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State Pensions

Volume 447: debated on Thursday 8 June 2006

To ask the Secretary of State for Work and Pensions what estimate he has made of the total state pension entitlement in real terms using 2005-06 prices for a person on median earnings who works from age 25, based upon (a) the existing pensions system and (b) the reformed pension system set out in the White Paper Cm 6841. (75511)

The information requested is in the following table.

Total weekly state pension (basic and state second pension) (£)

In 2005-06 prices

In 2005-06 earnings terms

Under current scheme on reaching state pension age in 2050

245

100

Under proposed reformed system on reaching state pension age in 2053

360

139

Notes:

1. Estimates are for a male median earner (earning around £23,000 per annum) working from age 25 to state pension age (so reaching state pension age at age 65 in 2050 under the current scheme and at age 68 in 2053 under the proposed reformed scheme).

2. Estimates expressed in 2005-06 prices reflect the “real terms” value of pension entitlement in 2050 or 2053 relative to expected changes in the level of average prices over time.

3. Estimates expressed in 2005-06 earnings terms reflect the value of pension entitlement in 2050 or 2053 relative to expected changes in the level of average earnings over time.