Don't Stop Believing: The State and Future of UK Occupational Pensions

Abstract

Following on from the author’s 2010 Long Finance paper, “Don’t Stop Thinking About Tomorrow: The Future Of Pensions” (Finance Short 2-2010), this paper considers the status quo with UK occupational pensions in some detail. It discusses the reasons for the decline in funded defined benefit (DB) provision in the UK and, as collective DB is shown to be an efficient institutional design, proposes remedies thatmay resuscitate this ailing sector.

Don’t Stop Thinking About Tomorrow - The Future of Pensions

Abstract
We consider the future of retirement income provision over the long term, predominantly in the context of the UK. We indicate a number of errors currently being made in the analysis and management of pensions, contribute to the policy debate on some further policy issues and offer several innovations which could enhance the adaptability and resilience of the pension system. The somewhat unconventional view is advanced that pensions, broadly as formerly envisaged, are sustainable over the long-term.