Women state pension changes: 'Little time to plan for loss of income'

Elise Bray, 57, has been struggling to live on an occupational pension of just £7,000 a year since 2007, and is dismayed that the state pension, which could more than double her annual income, could be deferred by another 12 months. "I was shocked when I heard about the new intended rise. I understand that it is necessary – and fair – that men and women should have the same state pension age. But couldn't the government let those ages equalise by 2020 as previously planned and then start raising them again? Bringing forward the rise to 66 gives women in their 50s very little time to plan for the loss of income," she says. Bray worked as an office manager for the Department for Transport until 2005, when she was diagnosed with cancer. While she was off work the department started making cuts and she agreed to take early retirement. She returned at the end of 2007 for a short period while working for an employment agency, but that contract was cut and she has not been able to find work since, despite continuously applying for jobs. To keep busy she is doing voluntary work at an animal rehoming charity – the Rabbit Residence Rescue in Barley. The government's recent decision to phase out the default retirement age (DRA) – the minimum age at which employers can force their staff to retire – will help to protect those in work, although some employers, such as police forces and the National Air Traffic Services, will be able to argue that the demands of their work mean they still need to apply a cut off point for retirement. And the abolition of the DRA doesn't help those who are already unemployed in the run up to retirement. As Bray points out, there are no rules to force employers to give older people a job: "Sometimes I don't even get an interview." Bray's salary was supporting her household – her husband had a nervous breakdown 10 years ago and has been signed off work ever since. Bray had worked for the Department for Transport since 1983, but her occupational pension is limited because, like many women, she took time out to raise her two children. "For several years I was working just four hours a day so I could fit in with the school day," she says. "As they got older I did more hours, but it's difficult to catch up. A friend who has just retired from the department worked full time throughout her career, and she's not getting that much more income from her pension. People think that all civil servants get a gold plated pension, but that simply isn't the case." Bray and her husband have to be very careful how they spend their income: there are no meals out, no holidays, no treats. Even so, they are having to dip into her "modest" savings and she is worried these will run out long before she and her husband become eligible for the state pension. He can start claiming in February 2017, and if the government's plans are voted through parliament she will receive her state pension in March 2018 – 12 months later than previously expected. The delay will cost her £5,077 in pension income at today's payment levels, or £7,280 if the state pension payment is raised to the £140 proposed by pensions minister Steve Webb last autumn. A green paper setting out his proposals is expected around Easter. The extra money – when it does finally arrive – will make a huge difference to their lives, Bray says. "I have to be very careful about what I spend money on now. I believe I've paid enough stamps to get a full pension. Life should be a lot easier."