HC Deb 08 March 1989 vol 148 cc575-9W
Mrs. Beckett

To ask the Secretary of State for Social Security if he will publish a revised version of tables P1 to P6 of the technical annex to the White Paper "Reform of Social Security" taking into account changes in prices, earnings and other relevant factors since 1985.

P1 Pension projections for men retiring in 2013 onwards
Examples with more years of earnings
Weekly pension basic pension plus additional pension plus personal pension or COMP pension
Age in 1988 and earnings level Personal pensions Money purchase schemes
Amount invested Amount invested
SERPS—people without a contracted-out pension Rebate only Rebate + 2 per cent. Rebate+2 per cent. Rebate+4 per cent.
Rate of return over prices Rate of return over prices Rate of return over prices Rate of return over prices
3 per cent. 3½per cent. 4 per cent. 3 per cent. 3½per cent. 4 per cent. 3 per cent. 3½per cent. 4 per cent. 3 per cent. 3½per cent. 4 per cent.
16 Low earner 81 87 93 101 112 122 133 118 129 141 144 159 175
Middle earner 105 114 123 135 155 171 188 165 182 202 208 231 257
High earner 113 127 139 154 175 194 217 186 208 233 236 265 299
20 Low earner 79 84 89 94 105 113 122 110 119 129 133 144 157
Middle earner 104 116 125 137 155 170 187 165 181 200 205 227 252
High earner 112 130 142 157 175 194 216 187 208 232 234 261 293
30 Low earner 74 77 80 84 91 96 101 95 100 106 110 116 124
Middle earner 106 109 114 120 136 144 153 143 152 162 171 183 196
High earner 115 120 126 132 149 158 168 157 167 178 187 200 215
40 Low earner 71 69 70 72 77 78 80 79 81 83 87 88 92
Middle earner 101 95 97 100 111 115 119 116 120 124 132 138 143
High earner 108 101 104 106 119 123 127 124 128 133 143 148 154

P2 Pension projections for men retiring in 2013 onwards
Examples with fewer years of earnings
Weekly pension basic pension plus additional pension plus personal pension or COMP pension
Age in 1988 and earnings level Personal pensions Money purchase schemes
Amount invested Amount invested
Rebate only Rebate+ 2 per cent. Rebate+ 2 per cent. Rebate + 4 per cent.
Rate of return over prices Rate of return over prices Rate of return over prices Rate of return over prices
SERPS—people without a contracted-out pension 3 per cent. 3½ per cent. 4 per cent. 3 per cent. 3½ per cent. 4 per cent. 3 per cent. 3½ per cent. 4 per cent. 3 per cent. 3½ per cent. 4 per cent.
16 Low earner 76 81 86 92 103 111 120 108 117 127 130 142 157
Middle earner 104 112 121 132 152 167 184 161 178 197 203 226 251
High earner 111 122 133 146 168 186 207 179 199 222 227 254 285
20 Low earner 74 79 84 89 98 106 114 103 111 120 123 134 146
Middle earner 103 114 123 134 152 166 183 161 177 196 201 222 247
High earner 110 128 140 155 173 192 214 184 205 230 231 259 291
30 Low earner 71 74 77 80 87 91 95 90 95 100 103 109 116
Middle earner 104 107 112 118 134 142 151 141 150 160 170 181 195
High earner 115 120 127 132 140 158 168 157 167 178 187 200 215
40 Low earner 68 66 67 68 72 73 75 74 75 77 80 82 84
Middle earner 101 95 97 100 111 115 119 116 120 124 132 138 143
High earner 108 101 104 100 119 123 127 124 128 133 143 148 154

Mr. Peter Lloyd

[holding answer 13 December 1988]: The information requested is in the tables.

It should be noted that the contracted-out rebate assumed is 5.8 per cent. of earnings between the lower and upper limits for national insurance contributions, declining to 3.75 per cent. by 2018. The future figures are purely illustrative and should not be taken as precise predictions of what the contracted-out rebate will be. The lower and upper earnings limits are assumed to increase in future in line with prices. In all cases the contracted-out rebate is boosted by the 2 per cent. incentive addition which is to be given to personal pensions and newly contracted-out occupational schemes up to 1992–93.

Men are assumed to take their pension at 65, women at 60. The projections for widows assume that their husband dies after reaching 65.

P3 Pension projections for women retiring in 2013 onwards
Examples with more years of earnings
Weekly pension basic pension plus additional pension plus personal pension or COMP pension
Age in 1988 and earnings level Personal pensions Money purchase schemes
Amount invested Amount invested
SERPS—people without a contracted-out pension Rebate only Rebate + 2 per cent. Rebate+ 2 per cent. Rebate+ 4 per cent.
Rate of return over prices Rate of return over prices Rate of return over prices Rate of return over prices
3 per cent. 3½ per cent. 4 per cent. 3 per cent. 3½ per cent. 4 per cent. 3 per cent. 3½ per cent. 4 per cent. 3 per cent. 3½ per cent. 4 per cent.
16 Low earner 62 60 62 64 69 71 74 71 74 77 79 83 88
Middle earner 77 74 78 82 91 96 103 95 101 108 112 120 129
High earner 93 91 97 104 116 125 135 122 132 144 148 161 177
20 Low earner 60 58 60 61 65 67 69 67 69 71 74 76 79
Middle earner 75 72 74 77 85 89 93 89 93 98 103 108 115
High earner 92 89 93 98 110 116 124 115 122 131 137 146 157
30 Low earner 64 57 57 58 64 65 66 66 67 68 74 76 77
Middle earner 73 65 66 67 75 77 79 78 80 82 89 92 94
High earner 84 76 78 80 90 93 96 94 97 100 109 113 117
40 Low earner 52 47 48 48 50 51 51 51 52 52 54 55 56
Middle earner 59 54 55 55 59 60 61 60 61 62 65 66 67
High earner 69 63 64 65 69 71 72 71 73 75 78 80 82

P4 Pension projections for men retiring in 2013 onwards
Examples with fewer years of earnings
Weekly pension basic pension plus additional pension plus personal pension or COMP pension
Age in 1988 and earnings level Personal pensions Money purchase schemes
Amount invested Amount invested
SERPS—people without a contracted-out pension Rebate only Rebate+ 2 per cent. Rebate + 2 per cent. Rebate+ 4 per cent.
Rate of return over prices Rate of return over prices Rate of return over prices Rate of return over prices
3 per cent. 3½ per cent. 4 per cent. 3 per cent. 3½ per cent. 4 per cent. 3 per cent. 3½ per cent. 4 per cent. 3 per cent. 3½ per cent. 4 per cent.
16 Low earner 61 60 62 63 67 69 72 69 71 75 76 80 84
Middle earner 76 74 77 81 87 91 96 90 95 101 103 110 117
High earner 90 90 95 101 109 116 125 114 122 131 133 144 156
20 Low earner 60 58 59 61 64 65 67 65 67 69 71 73 75
Middle earner 74 72 74 76 82 85 88 84 87 91 94 98 103
High earner 90 88 91 95 103 108 113 107 112 118 122 129 136
30 Low earner 53 50 50 51 54 54 54 54 55 55 58 58 59
Middle earner 64 58 59 59 64 65 66 66 67 68 72 73 75
High earner 78 70 71 71 80 81 82 82 83 85 92 94 96
40 Low earner 49 45 45 45 47 48 48 48 48 49 51 51 51
Middle earner 57 50 51 51 55 55 56 56 57 57 61 61 62
High earner 69 58 59 60 66 67 68 68 69 70 76 77 79

P5 Pension projections for men retiring in 2008 onwards
Examples with more years of earnings
Weekly pension basic pension plus additional pension plus personal pension or COMP pension
Age in 1988 and earnings level Personal pensions Money purchase schemes
Amount invested Amount invested
SERPS—people without a contracted-out pension Rebate only Rebate+ 2 per cent. Rebate + 2 per cent. Rebate+ 4 per cent.
Rate of return over prices Rate of return over prices Rate of return over prices Rate of return over prices
3 per cent. 3½ per cent. 4 per cent. 3 per cent. 3½ per cent. 4 per cent. 3 per cent. 3½ per cent. 4 per cent. 3 per cent. 3½ per cent. 4 per cent.
16 Low earner 81 81 85 90 100 106 113 104 111 119 124 133 144
Middle earner 108 111 119 129 147 159 173 155 169 185 194 211 232
High earner 124 131 143 157 178 196 216 190 209 233 238 264 294
20 Low earner 78 79 82 86 94 99 105 98 104 110 115 122 130
Middle earner 106 107 113 120 137 147 157 145 155 167 176 189 205
High earner 125 128 137 147 168 181 196 178 192 209 218 237 259
30 Low earner 80 72 74 75 85 88 90 89 91 94 102 105 109
Middle earner 103 95 98 101 117 121 126 122 127 133 145 152 159
High earner 119 110 114 118 136 141 148 142 149 156 169 177 187
40 Low earner 65 59 60 61 65 66 66 67 67 68 72 73 75
Middle earner 88 79 81 82 89 91 93 92 94 97 103 105 108
High earner 102 91 93 95 104 107 110 108 111 114 122 126 130

P6 Pension projections for widows retiring in 2008 onwards
Examples with less years of earnings
Weekly pension basic pension plus additional pension plus personal pension or COMP pension
Age in 1988 and earnings level Personal pensions Money purchase schemes
Amount invested Amount invested
SERPS—people without a contracted-out pension Rebate only Rebate+ 2 per cent. Rebate+2 per cent. Rebate+ 4 per cent.
Rate of return over prices Rate of return over prices Rate of return over prices Rate of return over prices
3 per cent. 3½percent. 4 per cent. 3 per cent. 3½per cent. 4 per cent. 3 per cent. 3½ per cent. 4 per cent. 3 per cent. 3½ per cent. 4 per cent.
16 Low earner 72 78 82 87 95 101 107 99 105 113 116 124 134
Middle earner 107 110 118 126 141 153 165 149 161 176 181 198 216
High earner 124 133 143 156 173 189 208 183 201 222 225 249 276
20 Low earner 75 76 79 83 90 94 99 93 98 104 107 114 121
Middle earner 105 106 111 117 132 140 149 138 147 157 165 177 190
High earner 124 129 136 145 162 173 186 171 183 197 205 221 240
30 Low earner 68 65 66 68 72 74 75 74 76 78 82 84 87
Middle earner 94 88 90 93 105 109 113 109 114 118 127 133 139
High earner 113 104 107 110 125 130 134 131 135 141 153 159 166
40 Low earner 60 55 56 56 60 60 61 61 61 62 65 66 67
Middle earner 86 75 76 77 85 87 89 88 90 92 99 101 103
High earner 103 86 88 89 101 103 105 105 107 110 120 123 127

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