Living longer and prospering? Designing an adequate, sustainable and equitable UK state pension system
The population of the United Kingdom is ageing. Steep declines in mortality in middle and late life mean we have a much better chance of living to claim a state pension, and then to receive it for much longer than has ever previously been the case.
24. mars 2015
Fertility rates have been below ‘replacement level’ for more than forty years – so as we age there are fewer individuals in subsequent generations paying contributions to finance a growing outgo. The UK state pension system has undergone reforms aimed at addressing this demographic challenge. However, unless we can encourage greater economic activity amongst older workers we risk the state pension becoming unsustainable. In this paper we identify arguments for further reform to the system.