Lies, damn' lies and the State Pension

Right, this has set the scene for a massive pensions mis-selling scandal in a few years' time:

Around half a million people who have not paid enough National Insurance will be entitled to a full state pension if they top it up with one-off payments, it was reported. It will potentially boost the retirement income of a generation of older women who stayed at home to raise children or care for sick or disabled family members. Only around a third of women reaching pension age qualify for a full basic state pension.

The last sentence is factually correct*, but what they conveniently overlook is the fact that women pensioners receive roughly the same in old-age related State benefits as men:

Per the ONS Pensions Survey: "Mean annual income from state pensions and related benefits for pensioner couples was £10,191, compared with £6,911 for single men and £6,700 for single women."

Why? Because of the Pensions Credit! So if women pay for additional State pension, they will, in nine cases out of ten, lose just as much in Pensions Credit. It would be possibly the worst investment of of all time!

* Per the PPI's Pension Facts, avg. Basic State Pension for men = £76, for women = £63; avg. SERPS/S2P incl. COD for men £43, for women £14.