Women who qualify for state pensions could be due a major windfall thanks to a little-known gap in the system which can result in backdated payments of up to £45,604.
The government has promised to reimburse these amounts, allowing many women across the UK to reclaim substantial sums of money that had not been paid to them.
WASPI Women Could Receive Tens of Thousands in Back Payments Under State Pension Loophole
According to the Express, the backdated payments could total tens of thousands of pounds for each eligible woman.
However, the eligibility criteria for receiving the back payment are quite specific and somewhat complex. People who do meet these requirements could may receive significant amounts of money.
The qualification requirements state that women who reached state pension age before April 2016 and are receiving the zero basic state pension could be eligible for the benefit. They must also have a husband who reached the age of 65 before March 17, 2008.
Those in this category of people who currently receive less than 60% of their spouse's state pension may qualify for a rise of up to 60% of his pension amount.
Expert’s Insights on How WASPI Women Can Benefit from State Pension Loophole
MoneySavingExpert Martin Lewis has discussed the loophole on his website saying: “Under a little-known rule, women in this specific group are allowed to claim back underpaid pensions ALL the way back to when their husband started to draw his state pension (typically at age 65). This is because they're deemed as having 'deferred' their pension rather than having been underpaid it, as they never had a basic state pension to begin with.”
Currently, the weekly rate for a married woman's pension stands at £93.60. When calculating the total amount over a year, from 2008 to 2021 this adds up to a significant £45,604.
Those who are able to benefit from this loophole have options when it comes to receiving their backdated payments. They can either opt for a lump sum payment of the total amount owed or choose to defer the payments, which would result in significantly higher pension amounts for the rest of your lives.