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Pensions

Volume 164: debated on Friday 12 January 1990

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To ask the Secretary of State for Social Security what steps have been taken to ensure that people contracting out by means of personal pension schemes have been advised of the approximate age at which, assuming a rate of return of 0·5 or 2·5 per cent. above the annual increase in earnings, it is likely to be in their interest to return to the state scheme.

It is for an individual wishing to take out a personal pension to seek advice appropriate to his or her needs. In the case of personal pension schemes which are investments as defined in the Financial Services Act, persons regulated by bodies under that Act have a duty to provide best advice on such products. It is for the individual to make arrangements for obtaining any further advice which may be necessary in the light of changing circumstances.

To ask the Secretary of State for Social Security whether anyone contracting out by means of a personal pension scheme will be allowed to return to the state scheme at any age.

To ask the Secretary of State for Social Security if he will publish in the Official Report, for each uprating from 1973 to 1990, the percentage above inflation by which the basic state pension has, and is to be, uprated.

[holding answer 13 December 1989]: The information requested is set out in the table.

UpratingIncrease of retirement pension above RPI (percentage)
October 19734·9
July 197415·6
April 1975-1·7
November 19753
November 19760
November 19771·4
November 19783·3
November 19792·1
November 19801·2
November 1981-3
November 19824·7
November 19830
November 19840
November 19850
July 19860
April 19870

Uprating

Increase of retirement pension above RPI (percentage)

April 19880
April 19890
April 19900

In November 1983 the method of uprating changed from being partly based on forecasts of future inflation to being based on known movements in the retail prices index.