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
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?
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?
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.
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
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?
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
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
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)
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
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?
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.
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.
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?
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?
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