A retirement expert has said there are some key lessons that everyone should take from the WASPI controversy (Women Against State Pension Inequality). The debate has lasted for over a decade over the DWP’s communication of changes to the state pension age, when it rose for women from 60 to 65 and then 66.

The campaigners say this generation of 1950s-born women not properly informed of the change, with many having to suddenly change their retirement plans when they found out. Despite the Government’s own Ombudsman saying there was ‘maladministration’ and there should be payouts, Labour announced in December 2025 there would bo no DWP compensation.

In 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.”

Compensation should be paid

Hannah Martin, pensions expert and founder of The Rich Retiree, said she thinks the WASPI women should get compensation, although it is hard to decide how much should be paid out in each case. 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 investigation by the Parliamentary and Health Service Ombudsman recommended compensation ranging from £1,000 to £2,950. But Mr McFadden told the Commons providing payouts would not be the right thing to do.

He said: “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.”

Ms Martin said that there are still glaring inequalities between men and women when it comes to finances in retirement. She said: “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.”

Looming changes to the state pension

The state pension age is soon increasing again, raising the question of whether those affected know about the change. The access age is going up from the current 66 for men and women. It will increase in stages from April 2026 to reach 67 by April 2028.

Ms Martin said people often don’t think through their finances for their retirement. She said: “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.”

On this point, she said every person should be proactive in understanding the rules and planning ahead. She 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 can be confusion over many of the rules that apply to your retirement funds. 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 per cent tax-free allowance, how much to draw down from pensions each year, and rules around pension inheritance.”

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