Challenges for the UK Pension System - IFS report, published April 2023

SouthCoastBoy

I have just stumbled across this report, and found it interesting, so thought I would post on here in case others are interested..

https://ifs.org.uk/publications/challenges-uk-pension-system-case-pensions-review

The projected rates of return on page 17 I found interesting and maybe slightly concerning, there appears to be a negative correlation, hopefully that trend doesn't continue, I think it means my 3.5% per annum growth for equities is prudent.

Albermarle

SouthCoastBoy said:

I have just stumbled across this report, and found it interesting, so thought I would post on here in case others are interested..

https://ifs.org.uk/publications/challenges-uk-pension-system-case-pensions-review

The projected rates of return on page 17 I found interesting and maybe slightly concerning, there appears to be a negative correlation, hopefully that trend doesn't continue, I think it means my 3.5% per annum growth for equities is prudent.

Thanks for posting that . An interesting read, although I only skimmed through it.
Main points have been brought up on the forum from time.

Dramatic drop in DB pensions in private sector.
People with low financial literacy ( the majority )  expected to somehow manage a DC pot and the retirement income from it . Same issue as people get very old.
Low earners only adding very small amounts to a pension each year.
Number of self employed people contributing to a pension has dropped a lot in recent years.
Low earners/spenders can maybe manage on state pensions, but middle income /self employed could find retirement income uncomfortably below what they are used to/expec, due to inadequate private/workplace pension provision.

Some good news is that the % of pensioners living in relative poverty has dropped a lot over the years.

katejo

SouthCoastBoy said:

I have just stumbled across this report, and found it interesting, so thought I would post on here in case others are interested..

https://ifs.org.uk/publications/challenges-uk-pension-system-case-pensions-review

The projected rates of return on page 17 I found interesting and maybe slightly concerning, there appears to be a negative correlation, hopefully that trend doesn't continue, I think it means my 3.5% per annum growth for equities is prudent.

Also found it interesting to do a skim read. I am nearing retirement and know that I am better off than many (university superannuation pensions with AVC's and mortgage paid off) but still find it difficult to predict how much I will need since I don't know how long I will live/how healthy I will be.