§ Mr. FlynnTo ask the Secretary of State for Social Security if she will ensure that individuals deciding to contract out of SERPS are sent before making that decision, a simple explanation of the scheme and the respects in which it differs from occupational and personal pension schemes. [10572]
§ Mr. DenhamWe publish a booklet NP46 "A Guide to Retirement Pensions" which contains a comprehensive guide to SERPS and information on contracting-out of SERPS. This is available from DSS offices.
On 17 July, we announced a wide-ranging review of pensions which will address nine fundamental challenges. One of these is to raise awareness of pensions and improve the level of financial education so that people understand the importance of saving for retirement and make the right choice about which pension product is best for them.
§ Mr. FlynnTo ask the Secretary of State for Social Security what estimate she has made of the weekly state basic earnings-related and total pensions payable to men and women on average earnings and half average earnings 779W reaching pension age in (a) 1997, (b) 2007, (c) 2017, (d) 2027, (e) 2037 and (f) 2047, (i) in cash terms and (ii) as a percentage of their pre-retirement earnings, assuming that the basic pension and the earnings limits for contributions are uprated in line with (1) prices and (2) average earnings. [10570]
§ Mr. DenhamThe information is in the tables:
Table 1: Amount of standard rate basic RP from April 1997, rounded to the nearest 5p in cash prices £ 1997 2007 2017 2027 2037 2047 Uprated by prices 62.45 76.05 92.70 113.00 137.70 167.90 Uprated by earnings 63.30 89.55 126.70 179.25 253.60 358.75
Table 2: standard rate basic RP as a percentage of male and female average earnings as at April in the year preceding
retirement; assuming basic RP is uprated in line with prices
Per cent. 1997 2007 2017 2027 2037 2047 Male 16 14 12 10 9 7 Female 22 19 16 14 12 10
Table 3: standard rate basic RP as a percentage of half male and female average earnings as at April in the year preceding
retirement; assuming basic RP is uprated in line with prices
Per cent. 1997 2007 2017 2027 2037 2047 Male 37 27 23 20 17 15 Female 43 37 32 27 24 20
Table 4: standard rate basic RP as a percentage of male and female average earnings as at April in the year preceding
retirement; assuming basic RP is uprated in line with earnings
from April 1997
Per cent. 1997 2007 2017 2027 2037 2047 Male 16 16 16 16 16 16 Female 22 22 22 22 22 22 780W
Table 5: standard rate basic RP as a percentage of half male and female average earnings as at April in the year preceding
retirement; assuming basic RP is uprated in line with earnings
from April 1997
Per cent. 1997 2007 2017 2027 2037 2047 Male 31 31 31 31 31 31 Female 43 43 43 43 43 43
Table 6: Additional Pension based on a person with average earnings throughout their working life expressed in cash prices
and as a percentage of male and female average earnings as at
April in the year preceding retirement; assuming basic RP and
earnings limit increase in line with prices
1997 2007 2017 2027 2037 2047 Male (cash prices) £80.80 £111.20 £144.90 £195.20 £224.10 £313.30 Male (as percentage of average earnings) 20 20 18 17 15 14 Female (cash prices) £52.00 £72.40 £97.10 £137.50 £189.30 £264.40 Female (as percentage of average earnings) 18 18 17 17 17 16
Table 7: Additional Pension based on a person with half average earnings throughout their working life expressed in cash prices
and as a percentage of half male and female average earnings as
at April in each year; assuming basic RP and earnings limit
increase in line with prices
1997 2007 2017 2027 2037 2047 Male (cash prices) £31.40 £44.10 £59.60 £85.20 £120.60 £180.00 Male (as percentage of half average earnings) 16 16 15 15 15 16 Female (cash prices) £16.20 £23.90 £33.50 £49.40 £75.30 £115.70 Female (as percentage of half average earnings) 11 12 12 12 13 14
Table 8: Additional Pension based on a person with average earnings throughout their working life expressed in cash prices
and as a percentage of male and female average earnings as at
April in each year; assuming basic RP and earnings limit increase
in line with earnings from April 1997
1997 2007 2017 2027 2037 2047 Male (cash prices) £80.80 £110.80 £146.00 £203.20 £271.40 £386.50 Male (as percentage of half average earnings) 20 20 18 18 17 17 Female (cash prices) £52.00 £72.00 £95.40 £133.30 £181.20 £258.10 Female (as percentage of half average earnings) 18 18 17 16 16 16 781W
Table 9: Additional Pension based on a person with half average earnings throughout their working life expressed in cash prices
and as a percentage of half male and female average earnings as
at April in each year; assuming basic RP and earnings limit
increase in line with earnings from April 1997
1997 2007 2017 2027 2037 2047 Male (cash prices) £31.40 £43.00 £58.00 £81.00 £110.60 £157.60 Male (as percentage of half average earnings) 16 15 15 14 14 14 Female (cash prices) £16.20 £23.50 £31.80 £45.20 £65.30 £93.40
Table 9: Additional Pension based on a person with half average earnings throughout their working life expressed in cash prices
and as a percentage of half male and female average earnings as
at April in each year; assuming basic RP and earnings limit
increase in line with earnings from April 1997
1997 2007 2017 2027 2037 2047 Female (as percentage of half average earnings) 11 12 11 11 11 12
Table 10: Total RP expressed in cash terms and as a percentage of male and female average pre-retirement earnings as at April in
each year; where basic RP is uprated by prices
1997 2007 2017 2027 2037 2047 Male (cash prices) £143.20 £187.20 £237.60 £308.20 £381.00 £481.20 Male (as percentage of half average earnings) 36 33 30 27 24 21 Female (cash prices) £114.50 £148.50 £189.80 £250.50 £327.00 £432.30 Female (as percentage of half average earnings) 40 37 33 31 29 27
Table 11: Total RP expressed in cash terms and as a percentage of half male and female average earnings as at April in each year;
where basic RP is uprated by prices
1997 2007 2017 2027 2037 2047 Male (cash prices) £93.80 £120.10 £152.30 £198.20 £258.40 £347.80 Male (as percentage of half average earnings) 47 43 38 35 32 31 Female (cash prices) £78.60 £100.00 £126.20 £162.40 £213.10 £283.60 Female (as percentage of half average earnings) 55 49 44 40 37 35 782W
Table 12: Total RP expressed in cash terms and as a percentage of male and female average earnings as at April in each year;
where basic RP is uprated by earnings
1997 2007 2017 2027 2037 2047 Male (cash prices) £144.10 £200.30 £272.70 £382.50 £525.00 £745.30 Male (as percentage of half average earnings) 36 36 34 34 33 33 Female (cash prices) £115.30 £161.60 £222.20 £312.60 £434.80 £616.80 Female (as percentage of half average earnings) 40 40 39 38 38 38
Table 13: Total RP expressed in cash terms and as a percentage of half male and female average earnings as at April in each year;
where basic RP is uprated by earnings
1997 2007 2017 2027 2037 2047 Male (cash prices) £94.70 £132.50 £184.60 £260.30 £364.10 £516.40 Male (as percentage of half average earnings) 48 47 46 46 46 46 Female (cash prices) £79.50 £113.00 £158.50 £224.40 £318.80 £452.20 Female (as percentage of half average earnings) 56 56 55 55 56 56 Notes:
1. Assumed real earnings growth of 1.5 per cent. a year and prices increase by 2 per cent. per annum. Retirement date is assumed to be the 1 April of each year in question.
2. All amounts are in cash prices. Amounts of AP are rounded to the nearest 10p, amounts of RP are rounded to the nearest 5p.
3. Percentages are rounded to the nearest 1 per cent.
Source:
Average earnings are taken from the New Earnings Survey 1996.