Written question asked by Jacques Arnold (Conservative), in the House of Commons. It was due for an answer on Thursday, 20 March 1997. It was answered by Oliver Heald (Conservative) on Thursday, 20 March 1997 on behalf of the Department of Social Security.

Dept of Social Security

Question: What is the estimated pension fund and weekly pension on retirement of a person on average earnings under Basic Pension Plus using the Government Actuary's assumptions on investment returns. - Includes figures.

Answer: Mr. Jacques Arnold: To ask the Secretary of State for Social Security what is the estimated pension fund and weekly pension on retirement of a person on average earnings under basic pension plus using the Government Actuary's assumptions on investment returns. [21476] Mr. Heald: Based on the Government Actuary's prudent assumptions for real investment returns of +4.25 per cent. per annum, it is estimated that people on average earnings for most of their working lives should accumulate a pension fund of some £130,000, equivalent to a pension of £175 a week in today's prices. In practice, funds could do much better than this; over the past 45 years or so, investments in equities have enjoyed returns averaging 7.7 per cent. a year, in real terms. Source: Government Actuary's Department.

Secondary information

Type: Written question
Reference: 21476; 292 c904W
Session: 1996-97
Subjects: Pensions Personal pensions Pension funds State retirement pensions
Contains statistics: Yes