§ Mr. FlynnTo ask the Secretary of State for Social Security what is the present value of the basic retirement pension as a percentage of average earnings; and what it will be in the years(a) 2000, (b) 2010, (c) 2020, (d) 2030 and (e) 2040 if it is increased only in line with prices, assuming that average earnings increase by two per cent. more per year than the retail prices index. [1743]
§ Mr. DenhamThe information is in the table.
Year Basic standard rate of retirement pension as a percentage of average earnings 1996 17.4 2000 16.1 2010 13.2 2020 10.8 2030 8.9 2040 7.3 1. The figure for 1996 is based on average full time earnings for all employees in April 1996, from the New Earnings Survey. 2. Forecast figures are on the assumption that average earnings increase by 2 per cent, per year, while the real value of the standard rate of basic retirement pension remains at the 1996–97 level. 3. Percentages in the table are rounded to the nearest 0.1 per cent.