Nov 10 2006
The government has published its projection of the number of pensioners it forecasts will receive pension credit in the future.
It predicts that proposed pension reforms will reduce the amount of means testing in the pension system, stating that a third of pensioners will be eligible for pension credit by 2050, down from 70 per cent if the reforms do not take place.
The government used the Pensim2 model developed by in the Department for Work and Pensions to analyse the build up of pensions by employees in their working life.
James Purnell, pensions reform minister, reiterated his belief that pensions reform will only last if based on a consensus of parties.
"That's why we've been working hard since May to explain to people what our proposals mean, what they offer future pensioners and encourage people to scrutinise them in detail," he said.
The government's analysis notes that while its predictions are necessarily uncertain, other states of affairs set up by the model show that it is reasonable to believe they should still hold, even if starting assumptions are altered.
