§ Mr. Frank FieldTo ask the Secretary of State for Work and Pensions what the basis was for the calculation made on page 102 of the Green Paper "Simplicity, Security and Choice: Working and Saving for Retirement", that a £20,000 lump sum could be taken instead of a state pension. [90818]
§ Mr. McCartneyThe figure of £20,000 is in broad terms the amount of State pension that a hypothetical person with a State pension entitlement of £100 per week would forgo due to deferring for a five-year period, net of income tax applied at the standard rate of 22 per cent.
The example was for illustrative purposes only, and should not be regarded as a statement of policy. The detail of policy on the calculation and tax treatment of the lump sum will be decided following the consultation.
267W
§ Mr. Frank FieldTo ask the Secretary of State for Work and Pensions if he will set out the assumptions made for the estimate, given in the Green Paper "Simplicity, Security and Choice: Working and Saving for Retirement", that UK state spending on pensions will continue broadly at its current level of around five per cent. [90822]
§ Mr. McCartneyThe assumptions can be found on page 148 of the green paper 'Simplicity Security and Choice: Working and Saving for Retirement.' (Cm 5677)
§ Mr. Frank FieldTo ask the Secretary of State for Work and Pensions how many of those with liquid financial assets of more than £10,000 are members of an occupational or private pension scheme. [90821]
§ Mr. McCartneyIn 2001–02, there were around 6.4 million people of working age in Great Britain in a benefit unit with total capital assets of more than 10,000. Of these, around 3.8m were also contributing to some form of private pension.
Notes:
1. All figures are estimates and are taken from the Family Resources Survey (FRS). 2001–02 is the latest year for which data is available.
2. No provision has been made for any debts that might be simultaneously held by individuals.
3. Some people with capital assets of more than 10,000 will be members of, but not contributing to, a private pension. These might be people who are retired, who are in between jobs or whose circumstances may have recently changed. These people are not included in the 3.8 million estimate given above.
4. The estimates are based on sample counts that have been adjusted for non-response using multi-purpose grossing factors that control for tenure, Council Tax Band and a number of demographic variables. Estimates are subject to sampling error and to variability in non-response.
5. Questions on assets are a sensitive part of the FRS questionnaire and have relatively low level of response. Evidence suggests some under reporting of. capital by respondents.