The retirement income market has undergone profound changes due to “pension freedoms”. Since its introduction, the ILC-UK has been at the forefront of understanding the potential consumer risks and opportunities associated with the reform. In this special extended blog, Ben Franklin, Head of Economics of Ageing, takes stock of where we are and proposes further reform to embolden consumer freedom through embedding informed decision making at the point of retirement. He argues that a critical first step to achieving this aim will be default financial guidance. Continue reading
There are two fundamental issues I want to highlight with regards to the defined benefit crisis: the measurement of liabilities, and what should be done to prevent promises being broken (and how best to spread the burden if they are). Continue reading
After a lengthy inquiry, MPs on the Work and Pensions Select Committee have published their recommendations to tackle intergenerational fairness.
In short they suggest scrapping the triple lock on pensions and reviewing the winter fuel allowance. But are these measures the best way to promote fairness between the generations? Continue reading
The final earnings replacement rate – where 70% is often advocated as the ‘right’ target – has been a longstanding and widespread measure of retirement income adequacy. Financial planners use this benchmark, as do actuaries and other pension plan advisers, academics, and public policy analysts. Continue reading
Population ageing is driving down inflationary pressures and reducing real interest rates which gives central banks very little room for manoeuvre.
The Ready for Ageing Alliance came together in 2013 following the publication of the House of Lords Committee Report by the Public Service and Demographic Change Committee. Continue reading
This week’s #fridayfive is on the effectiveness of financial capability interventions for older people. Continue reading
On Monday, 18th July we launched ‘The state of the nation’s housing: An ILC-UK Factpack’, supported by FirstPort.
On Friday, 10th June 2016, Michelle McGagh delivered the following speech at the Second National Retirement Income Summit at the Chartered Insurance Institute. This one day summit was made possible through the support of the ILC-UK Partners Programme. Continue reading
Have the older generation benefited at the expense of the young?
As of last month, we have a new State Pension system which is expected to reduce pensioner poverty and raise low income levels, especially for women. Meanwhile, the Work and Pensions Committee is taking evidence on the question of Intergenerational Fairness – have the older generation benefited at the expense of the young?