§ Mr. WebbTo ask the Secretary of State for Social Security if he will estimate the amount of pension which would be received on retirement by(a) a person who leaves school in 2000–01, who earns average earnings throughout their working life and who remains a member of the state pension scheme throughout, and (b) a man and (c) a woman, who leaves school in 2000–01, who earns average earnings through his or her working life, and who immediately takes out a stakeholder pension into which he or she puts only the value of the National Insurance rebates. [126628]
§ Mr. RookerThe information is in the table. The figures are in 1999 earnings terms. In 1999 price terms the figures would be more than double the amounts shown.
Estimated basic and compulsory second tier pension for someone on average earnings throughout their working life and who reaches pensionable age in 2050 Basic pension Additional pension Total pension All—State scheme (a) 31.00 56.00 87.00 All—Stakeholder 31.00 71.00 102.00 Man—State scheme 31.00 57.00 88.00 Man—Stakeholder (b) 31.00 73.00 103.00 Woman—State scheme 31.00 55.00 86.00 Woman—Stakeholder (c) 31.00 67.00 98.00 Notes:
1. Figures, which are in 1999 earnings terms, are rounded to the nearest £ and may not sum as a result.
2. The estimates are based on average earnings of (i) all full-time employees; (ii) all male full-time employees; and (iii) all female full-time employees (whose average earnings are 74 per cent. of the average earnings of male employees).
3. The estimates are based on a person beginning work at 16 and working for 49 years until age 65.
4. The estimates for stakeholder pension schemes are based on the amount of state scheme pension foregone, which determines the level of at which the National Insurance rebates are set by the 349W Government Actuary's Department. However, when the State Second Pension becomes a flat-rate scheme for those who remain in it, the rebates will continue to be earnings-related, and so will be based on the state scheme pension which would be foregone if the scheme were fully earnings-related.
5. The final amount from a funded stakeholder pension will depend on investment returns, market performance and annuity rates oat pensionable age, together with the value of any voluntary contributions. (Annuity rates for a rebate-only stakeholder pension will be the same for both men and women).
6. The estimates are based on the Department's Lifepen model and the following assumptions:
Stakeholder pensions state April 2001; State Second Pension starts April 2002; State Second Pension becomes flat-rate from April 2006; earnings grow 1.5 per cent. a year faster than prices; basic State pension is uprated in line with prices.