Changes to women's pensions are misunderstood by many, according to the Pensions Advisory Service (TPAS).

The three main areas of difficulty are that between 2010 and 2020 the state pension age rises to 65 for women; there will be a reduction in 2010 in the number of qualifying years a woman needs to qualify for a full basic state pension, down from 39 to 30 years; and from 2009, there will be a change in voluntary contributions, making it possible to make these contributions for an additional six years for any tax year from 1975. Contributions will also be charged at a new higher rate, increasing from £8.10 per week to £12.05 per week.

TPAS chief executive Malcolm McLean, said: "It is very important that women, particularly those approaching retirement age, are aware of all these important changes. They could have a material effect on their pension plans and, in the case of voluntary NI contributions, the possibility of their securing a bigger pension for themselves for life."

McLean is urging all women who are still confused about the changes to contact the helpline for guidance. Details of the changes can be found on the website.

- Pensions Age January 2009

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