A single-tier pension: what does it really mean? - The Institute For ...
A single-tier pension: what does it really mean? - The Institute For ...
A single-tier pension: what does it really mean? - The Institute For ...
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A <strong>single</strong>-<strong>tier</strong> <strong>pension</strong>: <strong>what</strong> <strong>does</strong> <strong>it</strong> <strong>really</strong> <strong>mean</strong>?<br />
Table 4.4. Average gains to state <strong>pension</strong> income at SPA among<br />
individuals w<strong>it</strong>h different characteristics<br />
% gain % lose Mean change from<br />
move to <strong>single</strong>-<strong>tier</strong><br />
(£ p.w. at SPA)<br />
N<br />
All 18% 4% 1.94 1,075<br />
Male 6% 4% 0.86 741<br />
Female 44% 6% 4.34 334<br />
SPA = 2016 18% 1% 2.21 326<br />
SPA = 2017 14% 2% 1.33 303<br />
SPA = 2018 13% 7% 1.23 259<br />
SPA = 2019 32% 11% 3.44 187<br />
Single 27% 1% 3.08 250<br />
Couple 15% 6% 1.59 825<br />
Any children 18% 5% 1.98 919<br />
No children 16% 2% 1.71 156<br />
Low education 23% 5% 2.46 438<br />
Mid education 18% 4% 2.06 366<br />
High education<br />
Quintiles of total<br />
household net wealth<br />
10% 4% 0.93 271<br />
Lowest quintile 36% 4% 3.99 214<br />
2 20% 6% 2.15 212<br />
3 22% 3% 2.49 214<br />
4 4% 5% 0.58 219<br />
Highest quintile 9% 5% 0.53 216<br />
Ever paid reduced-rate NI<br />
Self-employment years<br />
36% 7% 5.22 59<br />
None 16% 4% 1.45 814<br />
1 to 5 11% 8% 0.58 85<br />
6 to 10 25% 8% 2.56 77<br />
More than 10<br />
Contracted-out years<br />
36% 1% 6.66 99<br />
None 53% 11% 5.70 196<br />
1 to 5 47% 8% 5.35 88<br />
6 to 10 19% 5% 1.62 78<br />
More than 10 5% 2% 0.52 713<br />
Note: Gain (lose) is defined as <strong>pension</strong> income at SPA under the proposed <strong>single</strong>-<strong>tier</strong> <strong>pension</strong><br />
system being £1 or more per week higher (lower) than <strong>pension</strong> income at SPA under the current<br />
system. Education is defined as ‘low’ if left full-time education at or before the compulsory<br />
school-leaving age (CSL), ‘mid’ if left full-time education between the CSL and age 18, and ‘high’<br />
if left full-time education at age 19 or above. Total wealth is per-head household wealth, and<br />
includes private <strong>pension</strong> wealth but not state <strong>pension</strong> wealth.<br />
Source: Authors’ calculations using English Long<strong>it</strong>udinal Study of Ageing and National Insurance<br />
administrative data.<br />
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