Gordon Marsden – 2014 Parliamentary Question to the Department for Work and Pensions
The below Parliamentary question was asked by Gordon Marsden on 2014-04-01.
To ask the Secretary of State for Work and Pensions, what assessment he has made of whether an individual on the minimum wage for a full working lifetime will receive a higher retirement income under the new single tier pension system than under the existing pension system.
Steve Webb
It is not possible to answer this question, as in order to calculate how much state pension an individual may receive in retirement under the single-tier system, compared to the current system, it is necessary to make a considerable number of assumptions. For instance: when they reach State Pension age, whether they have been contracted-out of the Additional Pension, or how many years they live after retirement.
Chapter 3 of the Single Tier Impact Assessment provides a detailed commentary on factors that are likely to influence whether someone is a notional gainer or loser compared to the current system.
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