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The International Longevity Centre-UK is an independent, non-partisan think-tank
dedicated to addressing issues of longevi...
The International Longevity Centre-UK is an independent, non-partisan think-tank
dedicated to addressing issues of longevi...
The International Longevity Centre-UK is an independent, non-partisan think-tank
dedicated to addressing issues of longevi...
The International Longevity Centre-UK is an independent, non-partisan think-tank
dedicated to addressing issues of longevi...
The International Longevity Centre-UK is an independent, non-partisan think-tank
dedicated to addressing issues of longevi...
The International Longevity Centre-UK is an independent, non-partisan think-tank
dedicated to addressing issues of longevi...
The International Longevity Centre-UK is an independent, non-partisan think-tank
dedicated to addressing issues of longevi...
The International Longevity Centre-UK is an independent, non-partisan think-tank
dedicated to addressing issues of longevi...
The International Longevity Centre-UK is an independent, non-partisan think-tank
dedicated to addressing issues of longevi...
The International Longevity Centre-UK is an independent, non-partisan think-tank
dedicated to addressing issues of longevi...
The International Longevity Centre-UK is an independent, non-partisan think-tank
dedicated to addressing issues of longevi...
The International Longevity Centre-UK is an independent, non-partisan think-tank
dedicated to addressing issues of longevi...
The International Longevity Centre-UK is an independent, non-partisan think-tank
dedicated to addressing issues of longevi...
The International Longevity Centre-UK is an independent, non-partisan think-tank
dedicated to addressing issues of longevi...
The International Longevity Centre-UK is an independent, non-partisan think-tank
dedicated to addressing issues of longevi...
The International Longevity Centre-UK is an independent, non-partisan think-tank
dedicated to addressing issues of longevi...
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Pension Commission: 10 Years On

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The 4th April 2016 marks ten years to the day after the final report of the Pension Commission. The Pensions Commission painted a future where individuals would need to do a combination of working longer, saving more, or paying more tax. The Commission argued that a failure to act would lead to poorer pensioners.

This ILC-UK analysis highlights positive progress in extending working lives, preventing pensioner poverty and getting more people into saving. But the think tank warns of complacency and paints a bleak picture for future pensioners.

This analysis, published on its website finds that since the Pensions Commission:

* The average age of exit from the labour force is increasing but it is still below what it was in the 1960s and 1970s.
* In fact, the average time spent in retirement continues to increase.
* Auto-enrolment has delivered a growing number of employees with workplace pensions.
* But median contribution rates are low and a growing proportion of us have no savings. Final Salary pension coverage continues to fall.
* Younger people are less well placed than previous generations to save and may attract lower long term returns on their savings.
* Effective tax rates have been falling but have increased more recently.
* Spending on pensioner benefits slightly above the long run average as a percentage of GDP

Published in: Government & Nonprofit
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Pension Commission: 10 Years On

  1. 1. The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change. Pension Commission: 10 Years On ILC-UK Retirement Income Summit 2016
  2. 2. The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change. The Pension Commission set out 4 scenarios  Working longer  Saving more  Paying more tax or  Poorer pensioners But what happened?
  3. 3. The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change. Are we working longer?
  4. 4. The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change. People continue to spend an increasing proportion of their time in retirement Source: ILC-UK analysis of DWP and ONS. Average time in retirement calculated as cohort life expectancy at average age of exit from the workforce.
  5. 5. The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change. The average age of exit from the labour force is increasing. But it is still below what it was in the 1970s Source: DWP and ONS
  6. 6. The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change. Are we saving more?
  7. 7. The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change. Auto-enrolment has delivered a growing % of employees with workplace pensions
  8. 8. The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change. But median contribution rates are on DC schemes are low Source: ILC-UK analysis of ONS data
  9. 9. The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change. A growing % of us have no savings. Final salary pension coverage is falling. Declining final salary (DB) pension coverage (UK)
  10. 10. The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change. And the young are less well placed to save
  11. 11. The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change. Are we paying more taxes?
  12. 12. The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change. Effective tax rates during the last decade have been relatively low by historic standards. Source: ILC-UK analysis of ONS data. Notes: There is a break in the time series for original income between 1976 and 1977.
  13. 13. The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change. There is much talk of older people taking a growing % of the cake. Spending on pensioner benefits as a % of GDP is above the long run trend, while spending on working age benefits is marginally below.
  14. 14. The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change. Are we seeing poorer pensioners?
  15. 15. The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change. Tackling pensioner poverty has been a major success (for now). Average pensioner incomes are predicted to decline in 10 years. The end of the golden age?
  16. 16. The International Longevity Centre-UK is an independent, non-partisan think-tank dedicated to addressing issues of longevity, ageing and population change. International Longevity Centre-UK

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