Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, pursuant to the Answer of 7 April 2014, Official Report, columns 103-4W, on state retirement pensions, if he will assess whether a woman born on 6 April 1981 who was in continuous employment from her 21st birthday until her state pension age as derived in line with the practice outlined in the Pensions Bill, had worked consistently in contracted-in employment for 30 hours a week in a role which paid the National Minimum Wage, had average female life expectancy, in line with the most recent ONS population projections, and was subject to any other assumptions used in the Impact Assessment which accompanied the Pensions Bill, would receive a different level of pension at the point of retirement under the Single Tier mechanism than they would have expected under the current pension system; and what the difference in the level of pension would be.

The state pension reforms radically simplify state pension provision, by replacing the current, two-tiered pension system with a simpler single-tier state pension for people reaching state pension age after 6 April 2016.

The majority of people reaching state pension age in the 40 years after the new state pension is implemented will have a higher pension income overall over the course of their retirement as a result of the reforms. The new state pension will also underpin automatic enrolment, which will see around 9 million people saving more, or saving for the first time, into a workplace pension.

The Pensions Bill provides for the Government to carry out a review of State Pension age every parliament. It is our intention that State Pension ages will only be finalised once someone is within ten years of their proposed state pension age. Because this date will be affected by future changes in longevity, at this point we cannot say with certainty what will be the state pension age for people born in the 1980s. In addition, any calculation on pension entitlement would also depend on decisions that have not yet been taken, including the starting rate for the single tier. Furthermore, future State Pension levels are determined by up-rating decisions taken by Governments on a year-by-year basis. Therefore, whilst we have forecast the possible impacts of the new system at a population level, it is not possible to give definitive statements of the future state pension entitlements for individuals who do not yet have a set State Pension age, whether under the current system or under the single tier pension

For the first few cohorts of people reaching State Pension Age from April 2016, the government will provide a statement service to help them plan for retirement.