Skip to main content

Measuring adequacy under the new pension flexibilities

The Department for Work and Pensions (DWP) estimated in 2012 that just over 10 million were at risk of having inadequate retirement incomes. Replacement rates are one measure of adequacy; assessing the extent to which retirement income allows individuals to replicate the standard of living they had in working life.

04. november 2015

Replacement rates have been brought into question by the removal of constraints to how individuals can access their Defined Contribution (DC) savings, from April 2015. This briefing note considers the applicability and use of replacement rates in the context of the new pension flexibilities as well as other developments, such as the rise of debt levels.

  • PPI201510