Default guidance needed to embolden consumer freedom

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

Guest blog: Stephen Burke, United for All Ages – Is attacking pensioners the best way to promote intergenerational fairness?

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

Guest blog: Dr Bonnie-Jeanne MacDonald, Dalhousie University – Replacing the replacement rate: How much is ‘enough’ retirement income?

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