Skip to main content

Pensions: Retail Sector

Volume 458: debated on Wednesday 14 March 2007

To ask the Secretary of State for Work and Pensions what assessment he has made of the impact on the pension fund of an individual on median earnings saving in the proposed personal accounts aged (a) 25, (b) 35 and (c) 45 in full-time employment contributing to an exempt employer scheme of a waiting period of (i) three months, (ii) six months, (iii) nine months and (iv) 12 months where the individual changes employer in line with the average frequency in (A) the retail sector and (B) the hospitality sector. (123164)

The information is not available in the form requested because the samples are too small to provide statistically reliable turnover rates for the two industries separately.

The calculations in the following table are therefore based upon a turnover rate for the retail and hospitality sectors combined.

Fall in fund values for different waiting periods

Reduction in expected value of fund for different waiting periods (%)

Age in 2012

3 months

6 months

9 months

12 months

25

7

13

21

27

35

7

13

20

26

45

7

13

20

27

Notes:

1. The calculations assume that the individual has a series of jobs, each 44 months long, until state pension age. Small variations in the percentage by age depend upon the length of their last job, which affects the total percentage of their career spent waiting to enter a scheme.

2. Based on a turnover rate of 27 per cent. of individuals for the retail and hospitality sectors combined (Labour Force Survey 2005).