UK Pensions: Opportunities and Challenges

Overview

In this paper, the UK pension system is examined, highlighting its significant challenges, including high fragmentation, low contribution rates, insufficient state pensions, and inadequate coverage for specific demographic groups. The paper traces the historical evolution of pensions, particularly the shift from Defined Benefit (DB) to Defined Contribution (DC) schemes, and discusses the impact of global financial crises. It advocates for comprehensive reforms such as consolidating pension schemes, increasing contribution rates, and fostering domestic investment. The authors also propose a more strategic, purpose-driven system to ensure financial security. This draft will be updated with a final paper before the end of 2024.