Women could lose £10,000 pension cash through being born too soon

Government reforms mean that from April 6 both men and women will only need to have 30 years of National Insurance contributions in order to be eligible for the full basic state pension.

The changes mean that a women who has paid National Insurance for 30 years whose birthday falls on or after April 6 will be entitled to the full state pension, which is currently 95.25 a week.

But someone who turned 60 just a day earlier who also has 30 years of National Insurance contributions will only be entitled to three-quarters of this sum. The Liberal Democrats claim this will cost women born too early to benefit from the changes about 20 a week – or 1,040 a year.

Steve Webb, Liberal Democrat work and pensions spokesman, said: “The April 2010 changes to the rules on state pensions are entirely welcome and long overdue but they create a cliff-edge for those who reach pension age immediately beforehand.

“Many of these women could lose out on up to 10,000 simply for being born a few days too early.”

The party supports the reforms, but says they should be phased in to reduce the “cliff-edge” effect for people who were born too early.

Men currently need to have 44 years worth of National Insurance contributions to benefit from a full basic state pension, while women need 39.

Women will be the main beneficiaries of the change; 87 per cent of men already qualify for a full state pension, compared with only 45 per cent of women.