Pensions - Articles - State Pension celebrates its one hundred and tenth birthday


State pension celebrates its 110th birthday this week – benefit worth 5.5 times more in real terms today

 Steven Cameron, Pensions Director at Aegon said: “As we enter 2019, the state pension celebrates another milestone with the first payments made 110 years ago this week. In 1909, it was worth £29.54 a week in today’s money terms compared to £164.35 today, showing the increased role the state has played in supporting pensioners. In 1909, when the State Pension was paid from aged 70, a woman of this age was expected to live on average an additional 9.3 years, and a man 8.4 years meaning they’d receive around 9 years of state pension. The current state pension age for men and women is 65, increasing to age 66 over the next 2 years. But those reaching that age now are expected to live for approximately 20 more years, meaning the state pension is typically paid for more than twice as long as when it was first introduced.
  
 “Future life expectancy improvements are very hard to predict and there’s been some debate recently about whether or not they’re slowing down. What’s clear however is that the state pension is a relatively expensive component of government spending accounting for around 40% of all welfare costs and even with scheduled state pension age increases, this could rise as our population ages. It’s hard enough predicting trends 10 years into the future, let alone picturing life in 110 years’ time. But as we benefit from an increasingly long and hopefully healthy retirement, it makes sense not to be totally reliant on the state pension for your retirement income.”
  
 • In 1909 the weekly payment was 25p or £29.54 in today’s money – today it’s 5.5 times higher at £164.35 a week
 • In 1909 people received the state pension at 70 and were expected to live less than ten years more – today it’s 65 and people are expected to live another 20 years
 • Life expectancy trends are hard to predict, but even with modest increases the UK’s ageing population makes it an expensive component of government spending

Back to Index


Similar News to this Story

DC investors need to be confident in master trusts
Following the publication of TPR’s blog on master trust authorisation extensions, Andy Parker, Associate at Barnett Waddingham, believes DC investors
Pensions industry must not think older people wont go online
Trafalgar House, the pensions administration specialist, has today urged schemes to reconsider the benefits of online solutions, following their surve
GMP equalisation to cost less than expected at eight billion
According to analysis by Hymans Robertson the true cost of GMP equalisation to UK businesses is likely to be around £8bn. This is about half the £15bn

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.