Ten years to the day after the final report of the Pension Commission, the International Longevity Centre – UK (ILC-UK) announced its second National Retirement Income Summit.
The Pensions Commission painted a future where individuals would need to do a combination of working longer, saving more, or paying more tax. The Commission argued that a failure to act would lead to poorer pensioners.
ILC-UK analysis highlights positive progress in extending working lives, preventing pensioner poverty and getting more people into saving. However, it also warns of complacency and paints a bleak picture for future pensioners.
Our analysis has found that since the Pensions Commission
- The average age of exit from the labour force is increasing but it is still below what it was in the 1960s and 1970s
- In fact, the average time spent in retirement continues to increase
- Auto-enrolment has delivered a growing number of employees with workplace pensions
- But median contribution rates are low and a growing proportion of us have no savings. Final Salary pension coverage continues to fall
- Younger people are less well placed than previous generations to save and may attract lower long term returns on their savings
- Effective tax rates have been falling but have increased more recently
- Spending on pensioner benefits slightly above the long run average as a percentage of GDP
ILC-UK’s second Retirement Income Summit will be hosted by the Chartered Insurance Institute on 10th June 2015. Registration is open now. Confirmed speakers at the event include: Baroness Jeanie Drake; Steve Webb (Royal London); Gregg McClymont (Aberdeen Asset Management); Professor David Blake (Cass); Chip Castille (Blackrock); and Michelle Cracknell (TPAS).
Spaces for the retirement income summit can be booked at: http://www.ilcuk.org.uk/index.php/events/second_national_retirement_income_summit