Background to the Research
- The 1999 NILT survey contained
a substantial module relating to pension provision and the circumstances
of pensioners in NI.
- The chapter presents the
survey data and places it within a fuller discussion of the policy
context and allied matters.
Research Approach
- The NILT survey began in 1998 and is carried out annually.
- Each year, interviews are carried out with
a random selection of adults (aged 18 years and over) who live in
private households in NI.
- The sample size for the 1999 NILT survey
was 2,200.
- The analysis and discussion in the chapter
focuses on two groups of respondents:
- People below pensionable age (60 years
for women and 65 years for men).
- People of pensionable age (60 years for
women and 65 years for men).
Main Findings
People below pensionable age
- Only a minority (13%) of respondents under
retirement age have given a lot of thought to how they would manage
financially on retirement and 33% have given no thought to this matter
at all.
- However, despite having given little thought
to how they would manage, few respondents under retirement age (7%)
expect to be 'quite badly off' or 'very badly off'.
- Only 33% of respondents are actually aware
of the existence of SERPS, and the majority (58%) are unable to select
the correct amount of the basic state pension at the time of the interview
(£66.75).
- 77% of respondents think that the basic
state pension is a universal pension paid to everyone on retirement'.
- 38% of employees are members of occupational
pension schemes, and the majority of these (85%) are in final salary
arrangements.
- The vast majority (81%) of respondents
in occupational pensions endorse the statement that 'the advantage
of a works pension is that you don't have to think about it'.
- 16% of respondents are currently contributing
to a personal pension.
- Of those respondents under retirement age,
61% are not members of an occupational or personal pensions scheme.
People of pensionable age
- A substantial proportion of pensioner households
in NI can be described as financially hard pressed.
- 13% of pensioners appear to be entitled
to, but not claiming, Income Support. In 89% of cases, the amount
apparently unclaimed is £5 or more.
- 45% of pensioners interviewed report a
longstanding illness or disability.
- Only 31% of respondents required no help
at all with personal care, whilst 27% need substantial assistance.
- Half of the pensioners interviewed say
they are worried that they might require nursing or residential home
accommodation at some point.
- The aspects of going into such care which
are of most concern are 'loss of independence' (37%) and 'leaving
one's own home and things' (28%).
Conclusions
- The NILT data cast some doubt over many
aspects of current pensions policy.
- With regard to those under retirement age,
the core issues to emerge are lack of engagement with post-retirement
provision, confusion, private pensions of questionable quality and
a cohort of older workers whose main form of provision consists of
reliance on a structure that will deliver less and less over the coming
decade.
- With regard to those over retirement age,
it is clear that a central plank of current policy - the Minimum Income
Guarantee for pensioners - will be as difficult to implement fully
and effectively in NI as elsewhere.
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