§ Mr. Sayeedasked the Secretary of State for Social Services what is the Government's policy regarding the role of personal and occupational pensions schemes in augmenting the state retirement pension provision; and if he has any estimates on savings to public funds resulting from the existence of private sector pension schemes.
§ Mr. NewtonOur consultative proposals for a new system of personal pensions emphasise the need to ensure that occupational pension schemes continue to play a vital572W role in retirement provision. Personal pensions will expand the scope of private provision and give employees more choice in the way they save for their old age.
Private pensions save public expenditure to the extent that they reduce reliance on means-tested benefits. No estimates of such savings are available. However, published estimates produced for my right hon. Friend's inquiry into provision for retirement show that occupational pensions are currently estimated to account for 22 per cent. of pensioners' total gross income compared with 15 per cent. in 1951. The share of pensioners' income derived from all State benefits has risen from 42 per cent. to 60 per cent. over the same period.