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A pension expert has pointed out some crucial lessons that everyone should learn from the WASPI controversy (Women Against State Pension Inequality). The debate has raged for more than a decade regarding the DWP’s handling of communications about state pension age changes, when the age for women rose from 60 to 65 and then to 66.
Campaigners argue this cohort of 1950s-born women was not adequately notified of the policy change, with many forced to abruptly revise their retirement arrangements when they found out. Despite the Government’s own Ombudsman finding ‘maladministration’ and recommending financial redress, Labour announced in December 2025 that there would be no DWP compensation. When announcing the decision, Work and Pensions Secretary Pat McFadden told Parliament: “The evidence shows that the vast majority of 1950s-born women already knew the state pension age was increasing thanks to a wide range of public information, including through leaflets, education campaigns, information in GP surgeries, on TV, radio, cinema and online.
“To specifically compensate only those women who suffered injustice would require a scheme that could reliably verify the individual circumstances of millions of women.” Hannah Martin, pensions expert and founder of The Rich Retiree, said she thinks the WASPI women should receive compensation.
Hard to quantify
But she said determining the exact amount for each person is challenging. She said: “I believe that compensation should be paid, but how much is ‘deserved’ or needed is harder to quantify.
“There will be women who have suffered far greater financial losses than others. I understand some have even lost their homes.”
The Parliamentary and Health Service Ombudsman’s investigation suggested compensation amounts between £1,000 to £2,950. However, Mr McFadden informed the Commons that providing such payouts would not be the right course of action.
He explained: “As for a flat-rate scheme that would cost up to £10.3billion and would simply not be right or fair, given it would be paid to the vast majority who were aware of the changes. I have heard calls for compensation aimed at lower-income pensioners – and we have focused in the past 12 months on raising Pension Credit uptake – but in the context of this decision, a scheme focused on any single income group still does not specify who may or may not have suffered injustice.”
Inequalities between men and women
Ms Martin said there are other disparities between men and women regarding retirement finances. She pointed out: “According to the Government, the estimated pension pots of women aged 55 to 59 in 2020 to 2022 was just £81,000, whereas for men it was £156,000 – almost double.
“Women earn less per hour, on average, than men in all nine major occupation groups. We’re also more likely to work in low-paid sectors, and often take time away from work to raise children and care for family.
“As pensions are usually earnings-based, this means women are able to contribute less to their pensions over their working life. We are also less likely to seek out financial advice than men, and more cautious about investing, all of which puts us at a greater disadvantage.”
Upcoming state pension changes
The state pension age is set to rise once more, prompting questions about whether those impacted are aware of the changes. The qualifying age is increasing from the current 66 for both men and women.
It will rise gradually from April 2026, reaching 67 by April 2028. Ms Martin warned that people frequently fail to properly plan for their retirement finances. She explained: “From experience, there’s a real lack of knowledge and awareness about how much people need to live on when they retire, and where that money might come from.
“I think a lot more education is needed – on what people will receive from the state (and when), and what kind of financial gap they need to plug.” She said that everyone should take the initiative to understand the rules and plan ahead.
We all have a duty
The pension expert said: “We all have a duty to make sure we are aware of what our rights are regarding the state pension, and how much we personally need to save – through a personal or work pension, or other financial means – to provide for ourselves in retirement.
“And specifically regarding changes, this can be as basic as keeping up to date with the news. Ideally, I’d like to see everyone conducting a pension audit every year, and checking what they are on track to get from the state, and what their other pension projections are. With knowledge, we can take the right actions to enjoy the retirement we deserve.”
The expert said there is often confusion surrounding many of the rules around pensions. Ms Martin said: “I see a lot of confusion about what age people can take money from their personal or work pensions, how best to take the 25 percent tax-free allowance, how much to draw down from pensions each year, and rules around pension inheritance.”
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