From Beveridge to Turner: Demography, Distribution and the Future of Pensions in the UK

This article outlines the recommendations of the UK Pensions Commission, andthe data and analysis on which they were based, including projections ofdemographic change, trends in private pension saving, and evolution of the statepension system. The Commission concluded that without reform, structuralproblems with UK pensions would lead to increasingly inadequate andinequitable provision in 15-20 years time. It recommended reforms whichwould lead to a more generous, more universal and less means-tested statesystem than would otherwise evolve, and the establishment of a low costNational Pension Savings Scheme, into which employees without goodemployer provision would automatically be enrolled. The proposals, which havenow largely been adopted by the UK government, imply eventual increases bothin state spending on pensions as a share of national income and in State PensionAge, but accompanied by measures to facilitate later and more flexibleretirement.[...]