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State Pension Pays Out Thousands to Underpaid Pensioners

Older Woman PensionerThousands of women are still receiving less state pension than they are owed and even more are getting nothing at all.

In April this year 74,000 women were identified as having been underpaid their state pension and told to expect a back payment of up to £23,000 each following the automatic cash increases for married women, widows, divorcees and over 80s who failed to receive enhanced pensions.

The state pension for women should be a minimum of 60% of their husbands total pension but many women are missing out. Not only this, women who are being underpaid can backdate these payments to the time their husband started drawing his state pension which would correspond with his 65th birthday. If their husband reached this age before March 2008 they can backdate one year now, however, if it was after March 2008 then the system was supposed to automatically top up pensioners who were not getting enough, but the system glitched. This means women who did not get the automatic top up are still due this payment.

Further reading: Should you review your pension before you retire?

The Department for Work and Pensions has estimated the total bill of topping up these missing payments to be in the region of £2.7billion.

The state pension at its highest level should be £179.60 per week, although the amount you get depends on the national insurance contributions you made while you were working or caring among other factors.

Retired women are being encouraged to contact the Department for Work and Pensions should they believe their pension payments to be lacking. There is also a group of retirees who are believed to be getting no state pension at all according to pension firm Lane Clark and Peacock who released information claiming there are 250,000 pensioners getting nothing from the state.

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