Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment he has made of the effect of poor health on an individual's ability to make financial preparations for retirement.

In addition to increasing employment prospects for women above the age of 60, this Government has introduced the New State Pension. The system in place for people who reached their State Pension age before 6 April 2016 was extremely complex and the new State Pension brings greater clarity by helping people to understand their State Pension more easily. It is also much more generous for many women who have been historically worse off under the old system. On average, women reaching State Pension age last year get a higher state pension over their lifetimes than women who reached State Pension age at any point before them, even when the acceleration of State Pension age is taken into account. And, by 2030, over 3 million women stand to gain an average of £550 extra per year as a result of these changes.

The New State Pension works hand in hand with Automatic Enrolment, enabling many more people to save in a workplace pension. And, combined with reviews of the State Pension age, these measures are designed to form the main elements of a sustainable basis of retirement income in the decades to come.

The new State Pension is based on an individual’s National Insurance record. There is a comprehensive crediting system in place for those who need it. People who are unable to work and who are in receipt of certain welfare benefits will receive National Insurance credits to ensure they continue to build up Qualifying Years for their State Pension.

To provide a secure and dignified retirement for those pensioners who would otherwise find themselves without an adequate income, Pension Credit is available. This is an income-related benefit paid out of general taxation which targets help at the poorest pensioners.

Pension Credit tops up a person’s other income to a standard minimum amount – currently £159.35 a week for a single person and £243.25 for a couple. Higher amounts may be available for those with a severe disability, caring responsibilities or certain housing costs.

For private pension saving, the Government is committed to providing free, impartial guidance through Pension Wise, to help people make informed and confident decisions about how they use any defined contribution pension savings they may have for their retirement.

Through its recent Fuller Working Lives Strategy and the Work, Health and Disability Green Paper, the Government is working with employers to target the support needed for individuals aged 50 years and over to remain in the labour market for longer as this brings benefits for an individual’s finances, health and wellbeing.