When was old-age pension introduced?
first OLD AGE PENSION.
The first OLD AGE PENSION was introduced in Germany by Bismarck under the Old Age Insurance Act of June 1889, which came into operation on 1 January 1891. The contributory scheme was compulsory for persons over 16 years of age who were in full employment and earning less than 2,000 marks (then equivalent to approx. £ 100 or $ 500) p.a. The pension became payable to persons at the age of 70 after premiums had been paid for a minimum of 30 years. Contributions were graduated according to income, starting at 7 pennigs a week for those whose annual wage did not exceed 300 marks. The employer contributed an equal amount. As in Germany today, the amount of the pension depended on the rate of the contributions. During 1891, the first year of the scheme, the sum of 15,299,004 marks was paid out to 132,926 pensioners.
The first country of the British Commonwealth to introduce old age pensions was New Zealand under the Old Age Pensions Act passed on 1 November 1898. The scheme was non-contributory and provided for an annual pension of £ 18 for those with an annual income of £ 34 or less, diminishing by £ 1 for every £ 1 of income in excess of this sum. Applicants had to be 65 years of age if male, and 60 if female, of good moral character, and at least 25 years’ resident in the colony. The first payments were made in March 1899 and were made retrospective to 1 January of that year. A total of 4,699 pensions were granted during the first full year of operation, including one of only £ 1 p.a. to an applicant in Otago.
The first PAYMENTS OF OLD AGE PENSIONS were made on 1 January 1909, and were marked by displays of rejoicing and euphoria up and down the country.
