§ Mr. CousinsTo ask the Secretary of State for Social Security if he will estimate the sum required to purchase an annuity of(a) £116 per week rising in line with average earnings for a couple aged 65 years with £75 rising with average earnings for a survivor and (b) £65 per week, rising in line with average prices for a female aged 50 years. [72610]
§ Mr. TimmsAnnuities which increase in line with national average earning are not generally available.
An estimate has been made on the basis of current rates for annuities which increase in line with prices, adjusted to reflect assumed earnings growth relative to prices of 1.5 per cent. a year. It is estimated that a sum of £135,000 would be required to purchase an annuity of £116 a week, increasing in line with national average earnings, payable to a man aged 65, with an annuity of £75 a week payable on his death to his wife (assumed to be aged 62), also increasing in line with national average earnings.
On the basis of current rates for annuities which increase in line with prices, it is estimated that a sum of £85,000 would be required to purchase an annuity of £65 a week, increasing in line with prices, payable to a woman aged 50.
Note:
Both capital sums quoted are rounded to the nearest £5,000.