Pensions (Hansard, 26 November 1990)

Mr. John D. Taylor
To ask the Secretary of State for Social Security what is the comparable level of pension and contributions towards pensions in(a) Luxembourg, (b) Belgium, (c) the Netherlands, (d) Denmark and (e) the United Kingdom.

§ Mrs. Gillian Shephard
In general, it is very difficult to make meaningful comparisons between pension schemes in different countries because there are many fundamental differences in the way they are run. It is also very misleading to compare only the weekly rate of state pension payable, as there are many other factors to take into account.
For example, most other EC countries operate fully earnings-related state pension schemes—Luxembourg and Belgium fall into this category. This means that the rate of pension payable depends on the individual pensioner's earnings level during working life, and consequently there is a wide variation in the rate of pension paid from one person to another.
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In making a comparison of the situation in the countries mentioned, such factors as the other benefits covered by the contribution, the employee—employer contribution split, the provision of pensions for dependent spouses and the availability of additional pensions must be taken into account, and the cost of living.

§ Mr. Meacher
To ask the Secretary of State for Social Security what was the maximum state earnings additional pension payable in each year since 1978; and if he will give a projection for each year to 1999 consistent with his answer of 5 April 1990,Official Report, column 788–89.

§ Mrs. Gillian Shephard
The information requested is set out in the table. The amounts apply to a person in full-time employment who has received earnings at or above the upper earnings limit for national insurance contributions and retires on 6 April in each year, assuming price rises of 5 per cent. per year and average earnings increasing by 7 per cent. per year effective from April 1991.

Year of retirement Additional pension at retirement (£pw)

1978 nil

1979 1.30

1980 2.90

1981 5.25

1982 8.45

1983 11.70

1984 15.10

1985 19.10

1986 23.25

1987 28.50

1988 34.00

1989 40.45

1990 48.65

1991 56.00

1992 63.95

1993 72.75

1994 82.50

1995 93.10

1996 104.70

1997 117.40

1998 131.30

Year of retirement	Additional pension at retirement (£pw)
1978	nil
1979	1.30
1980	2.90
1981	5.25
1982	8.45
1983	11.70
1984	15.10
1985	19.10
1986	23.25
1987	28.50
1988	34.00
1989	40.45
1990	48.65
1991	56.00
1992	63.95
1993	72.75
1994	82.50
1995	93.10
1996	104.70
1997	117.40
1998	131.30