Life & Pensions, November 2008, p. 5
The UK's Continuous Mortality Investigation (CMI) has published its tables for scheme-specific mortality, which show a marked difference in the life expectancy of the richest cohort of pensioners versus the poorest. The data includes people on Self-Administered Pension Schemes (SAPS) to make it more representative of the general population. For men with a pension of £1500 a year or less, the life expectancy at age 65 was 5 years less than that for men in the highest pension bracket. For women, though, less than one year separates those on the lowest pensions from those with the highest.
Financial Times, Feb. 6th 2009, p.2.
Research into personal pension accounts published by the Department for Work & Pensions shows that 70 per cent of savers will get back more than twice the amount they put in, and 95 per cent will gain more than the cost of their own contributions, even after means-testing. These findings underpin the government's decision to go ahead with the new personal pensions savings accounts scheme, which was announced on 5th February.
Financial Times, Feb. 5th 2009, p.4.
The Government has decided to go ahead with its plans to enrol millions of people automatically into personal pension accounts from 2012 after research showed the majority of people would be better off under the new system. Critics point out that for around 5 per cent of savers, the new scheme will just replace means-tested benefits which they would otherwise have received, leaving them no better off.