UK - At the UK actuarial profession's conference on the ageing population in Edinburgh last week, actuaries, politicians and academics debated the issues facing both the UK and other countries, with government policy taking a battering.
In the closing plenary session Jane Falkingham, reader at the London School of Economics, said: “The Government has a pension system designed without due regard to the future. Reform is required now rather than later.”
Presentations by others challenged the assumption that pension credit legislation would be sufficient to encourage people to save for retirement.
Falkingham said: “The modeling that I have undertaken shows that by 2050, the basic pension and state second pension will only exceed the guaranteed part of the credit by £1 per week. Unless the structure is changed, very many people will have little incentive to save at all for their retirement.”
Falkingham added: “Future pension provision must seek to provide an adequate income in retirement for all, be transparent and equitable and offer real incentives to save. The basic state pension must be raised to the level it reached in the early 1980s, and linking it to economic growth.”
By Luke Clancy
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