UK - UK - Government long term targets for boosting pension provision in the private market and reducing the burden on state provision are unlikely to be achieved, claims the Pensions Policy Institute.
The PPI was referring to the government aim to switch current provision from 60% state and 40% private to 60% private and 40% state.
Research based on macro and micro-economic analysis shows the state is likely to remain the major provider for many people as only it can guarantee poverty protection, the PPI said, warning the balance between state and private pension provision should be as much about social policy as economics.
Research director at the PPI, Chris Curry (pictured), questioned the arbitrary nature of the set percentage targets.
He said: “The point is when the target was set in 1998 there was no real explanation as to why the shift should be the right level. So the wider question should be, ‘is there a right balance between the state and the private sector or would say 45% [and] 55% be a better balance?
“What we are concerned about is a whole host of different outcomes are possible but at the aggregate level it might not make a lot of difference what the shift is. Most individuals want a different mix anyway.”
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