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 assuming investment returns equivalent to those over the last 50 years. - Includes figures.

Answer: Mr. 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 assuming investment returns equivalent to those over the last 50 years. [21477] Mr. Heald: The average annual increase in the ordinary industrial share index in real terms from 1950 to 1995 was 7.7 per cent. Assuming that rate on investment growth, it is estimated that a person on average earnings paying in the minimum contributions over a working lifetime would accumulate a fund worth £320,000 by retirement, paying a pension of £435 a week. Source: Government Actuary's Department/Bacon and Woodrow pensions pocket book 1997. Note Pension amount is rounded to nearest £5.

Secondary information

Type: Written question
Reference: 21477; 292 c907W
Session: 1996-97
Subjects: Pensions Personal pensions Pension funds State retirement pensions
Contains statistics: Yes