Friends Provident offers tips to help women top up pensions

With the implications of the coalition government's pension reforms being strongly felt among the fairer sex, Friends Provident has produced a list of top tips to help women stay savvy about pensions.

The decision to scrap the Default Retirement Age will put workers in the UK in control of their own retirement routes. This is certainly welcome news for a large proportion of those people Friends Provident spoke to as part of a study into ageing and retirement in 2020.  51% of respondents agreed they would like to work past their retirement date.

But Friends Provident is warning that another reform, the move to accelerate the state pension age, could have negative consequences for many women. The provider has composed a checklist to help women, particularly those born between 1950 and 1955 who are affected by this decision, navigate the pension uncertainty they now face.

Martin Palmer, head of corporate pensions marketing, Friends Provident, comments: "The decision to fast-track the state pension age increase for women by 2018 could potentially scupper the retirement plans of half a million women in the UK. Without doubt an equal state pension age is the best way forward but it's the timing that is causing a stir.  Quite simply the move will mean these women are set to miss out on a state pension they were expecting sooner rather than later, and that presents a whole host of new challenges which women need to be prepared for."

Friends Provident's top ten tips are:

1. The rules around pensions are being rewritten and further proposals suggest there are more to follow. Keep yourself in the know by visiting pensionsadvisoryservice.org.uk/.

2. Prepare your finances for the worst - it is essential that your savings are sufficient to support you whatever happens.

3. Request a state pension forecast and find out what you can expect from the government. Prolonged gaps in working could affect the state pension you are entitled to.

4. Consider whether you might want to change the retirement age of any private pension.

5. Once you have a clearer picture of your pension, consider whether you could top up national insurance contributions to increase your state pension.

6. Familiarise yourself with the benefits offered by your employer and see if you're missing out.

7. Find out your state pension age. By April 2046 the state pension age for women will have increased to 68.

8. Plan for change - From starting a new job, changing your hours or going on maternity leave, any change can have consequences for your retirement planning.

9. Think about the sort of retirement you want - how soon do you want to stop working, do you want to work part-time? How much free time do you want?

10. Make a plan to help you get there - the earlier you start thinking about this the better!

Martin Palmer concludes: "As the retirement landscape continues to shift, it is worth having the most up-to-date information at your fingertips. For women who have taken career breaks, worked part time or care for children and/or parents it is especially prudent to understand how to plan for a flexible enough retirement that will work best for them throughout their lives. Steps can be taken to make this easier but often it's knowing which to take that's the tricky part."