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State Retirement Pensions

Volume 491: debated on Wednesday 22 April 2009

To ask the Secretary of State for Work and Pensions what his estimate is of the number of individuals who will reach state pension age in (a) 2010, (b) 2015 and (c) 2020 with no additional pension provision beyond the state pension. (267274)

The Government are committed to encouraging people to save for the future in private pension arrangements. The introduction of auto-enrolment and Personal Accounts in 2012 will reinforce this commitment, encouraging individuals to contribute to their own future pension income. As a result, the number of individuals reaching state pension age with no private pension income is estimated to decline over the next 10 years.

The number of individuals reaching state pension age (SPA) in 2010, 2015 and 2020 with no additional pension provision beyond that of the state (i.e. no private pension provision) is shown in the following table.

Year SPA is reached

Number of individuals with no private pension income

Individuals with no private pension income as a percentage of all those reaching SPA (percentage)

2010

200,000

25

2015

150,000

22

2020

100,000

17

Notes:

1. Figures are for Great Britain and are rounded to the nearest 50,000.

2. There is considerable uncertainty over future estimates of private pension provision; the number of individuals choosing to save in a private pension may alter over time according to the macro-economic environment and individual circumstances and preferences. Therefore, the estimates should only be seen as indicative.

Source:

DWP modelling

To ask the Secretary of State for Work and Pensions what recent estimate he has made of the number and proportion of people of working age in each age group without any form of pension saving outside the basic state pension in each of the last 10 years; and if he will make a statement. (269472)

The information is not available in the format requested. Such information as is available is presented in the following tables.

The introduction of auto-enrolment and personal accounts in 2012 is intended to increase private pension coverage by making it easier and more attractive for those workers not currently saving privately to do so. We estimate that between six to nine million people will be newly saving or saving more from the reforms.

Proportion of working age population contributing to a private pension by age, Great Britain

Percentage

20-29

30-39

40-49

50 to SPA

Total

1999-2000

32

53

55

42

46

2000-01

30

52

55

42

45

2001-02

30

52

56

42

45

2002-03

28

51

55

43

45

2003-04

27

50

54

42

44

2004-05

25

48

53

43

43

2005-06

24

47

51

43

42

Number of working age population contributing to a private pension by age, Great Britain

Million

20-29

30-39

40-49

50 to SPA

Total

1999-2000

2.3

4.7

4.1

3.5

14.5

2000-01

2.2

4.6

4.1

3.5

14.5

2001-02

2.2

4.6

4.3

3.6

14.7

2002-03

2.0

4.5

4.3

3.7

14.6

2003-04

1.9

4.4

4.3

3.7

14.3

2004-05

1.8

4.1

4.2

3.8

13.9

2005-06

1.7

4.0

4.2

3.8

13.7

Notes:

1. All figures are estimates and are taken from the Family Resources Survey (FRS). 2005-06 is the latest year for which these data are available.

2. Private pension refers to either an occupational, personal or stakeholder pension scheme.

3. Working age is 20 to state pension age (SPA); 20-59 for women and 20-64 for men.

4. FRS survey data are taken at a point in time. People who do not have private pension provision in a given year can save later on in life or may have had private pensions in the past.

Source:

Family Resources Survey, Great Britain, 1999-2000 to 2005-06.