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Pensions

Volume 885: debated on Tuesday 4 February 1975

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asked the Secretary of State for Social Services what is her estimate of the weekly pension which would be due to a man retiring at age 65 years on 1st February 1975 who had been a national insurance contributor on average weekly earnings since his 21st birthday if the employer and employee contributions had been paid into a funded scheme.

It is regretted that an estimate for a man on average earnings cannot be made in the time available. If, however, graduated contributions since April 1961 had been paid at the maximum and if the part of them and of the flat rate contributions deemed applicable to retirement pension had been applied to a funded scheme, it is estimated that the initial pension secured, if it were to be uprated in future in line with national average earnings, would be:

  • (a) about £6·50 per week to him, or
  • (b) about £2·50 per week to him and his widow after his death, with £1·50 to his wife.
  • Under the present system, maximum graduated contributions would have earned graduated pension of £2 a week on top of the flat rate pension.