The pension problem
Abstract:The UK pension system is heavily tax subsidised. In 2007/08 that subsidy cost about £38 billion a year. This makes the subsidy a cost to the UK government that exceeds annual defence spending. Total private pensions paid in 2007/08 were less than the total subsidy given to the industry. Despite more than £80 billion of annual contributions to private pensions in 2007/08 the private pension industry could only pay pensions as a result of the state subsidy it received. Alternatively, it could be argued that all pensions paid in that year were paid at cost to the government. The implication is that significant reform of private pensions in the UK is needed, and the paper suggests a range of potential reforms.
Document Type: Research Article
Publication date: 2010-12-08
More about this publication?
- Soundings pioneers thoughtful, critical ideas on culture, society and politics. That's why leading left thinkers from Britain, Latin America, Asia, the United States and Europe debate their ideas in our pages.
'Deeply thoughtful about the public life of politics and the intimacy of our private lives and how they interconnect. Soundings is one of the few places where you read ideas which can change your mind.' Madeleine Bunting
- Editorial Board
- Information for Authors
- Subscribe to this Title
- Ingenta Connect is not responsible for the content or availability of external websites