IFS

Tanjil Rashid looks at whether the pensions minister’s optimism for retirees is justified

The pensions minister has revealed that the Department for Work and Pensions (DWP) predicts people's pension incomes will in the future be consistent with present earnings.

The introduction of a flat-rate £144 per week state pension will reduce pay-outs for the vast majority of the population in the long run, according to a respected think tank.

A third of people approaching retirement cannot even guess what their income will be, increasing to 40% when focusing on DC members, the Institute of Fiscal Studies says.

A fifth of people approaching retirement will suffer large income falls and should expect to have to rely on savings and inheritances when they stop working, a report has found.

Jonathan Stapleton has a spring in his step

Public sector pension reforms will have "little or no long-term saving for taxpayers" because improved accrual rates cancel out retirement age hikes, an independent study says.