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Release: Pension Trends, Chapter 5: State Pensions, 2013 edition

Released: 10 December 2013

Contact

David Knight

Pensions Analysis Unit

pensionsanalysis@ons.gsi.gov.uk

Telephone: +44 (0) 1633 456439

Categories: Economy, Personal Finances, Pensions, State pensions

Frequency of release: Ad-hoc

Language: English

Geographical coverage: UK

Geographical breakdown: UK

  • A larger proportion of men than of women receive the full Basic State Pension (BSP): in September 2012, 80% of male pensioners received full BSP compared with only 46% of female pensioners.

     

  • Average net income received from state pension has increased over the period from 2003 to 2013 at a faster rate than Consumer Price Index (CPI) inflation. Average net income received from state pension increased by an estimated 14% for men and 23% for women in real terms over this period (This does not take into account any payments made to pensioners that were contracted out of the additional state pension).

     

  • Non-contributory (income-related) Pension Credit is made up of a means-tested guarantee credit element, designed to provide a minimum level of income for pensioners and a savings credit element. Single women are the largest group of pensioners receiving guarantee credit. There were 1.1 million single women recipients in February 2013.

     

  • Based on currently enacted policy and the proposal to introduce a single tier state pension system,  total public expenditure on state pensions, including Pension Credit and the Winter Fuel Payment, is projected to increase from £94 billion (6.0% of GDP) in 2012/13 to £438 billion (8.4% of GDP) in 2062/3. These estimates were produced prior to the Chancellor's 2013 Autumn Statement. Without the single tier pension the long term costs would have been even higher as a proportion of GDP (see OBR Fiscal Sustainability Report 2013).
Pension Trends provides a statistical backdrop for the debate on pensions. It looks at changes in pension provision over time in the context of social and economic developments and changes in the policy environment.

These National Statistics are produced to high professional standards and released according to the arrangements approved by the UK Statistics Authority.

Content from the Office for National Statistics.
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