Early findings were published from a trial that tested the effect of making automatic pension credit payments (without a claim) on the basis of personal data already held by the government. 9 per cent of participants were claiming pension credit at the end of the trial, compared with just over 3 per cent of the eligible non-recipient population.
Source: James Holland, Lucy Radford, Mehul Kotecha, and Sue Arthur, Early Findings from the Evaluation of the Pension Credit Payment Study, Department for Work and Pensions
Links: Report | DWP press release
Date: 2011-Nov
An article said that public authorities in Europe Union countries needed to ensure that pension systems, regardless of how they were organized, delivered adequate incomes in old age. The objective of adequacy of pensions systems should receive equal attention to the objective of sustainability and security; and the impact of proposed reforms on vulnerable groups, such as women with career breaks, should be addressed.
Source: Anne-Sophie Parent, 'Can the EU achieve adequate, sustainable and safe pensions for all in the coming decades?', Pensions: An International Journal, Volume 16 Issue 3
Links: Abstract
Date: 2011-Aug
A report provided new projections of the percentage of pensioners living in relative income poverty under a continuation of existing government policy on pensions, and under alternative policy scenarios.
Source: Leandro Carrera, Daniel Redwood, and John Adams, The Implications of Government Policy for Future Levels of Pensioner Poverty, Pensions Policy Institute
Links: Report | PPI press release
Date: 2011-Jul
A think-tank report made a series of recommendations designed to help tackle the problem of poverty and isolation in old age. Expert units made up of local community leaders, police officers, older people's charities, and local council officers should be set up to find and support the estimated 1 million pensioners who reported feeling lonely or trapped in their homes.
Source: Age of Opportunity: Transforming the lives of older people in poverty, Centre for Social Justice
Links: Report | Summary | CSJ press release
Date: 2011-Jul
A paper examined measures pertaining to older people used in surveys of poverty and social exclusion.
Source: Demi Patsios, Improving Poverty and Social Exclusion Measures for Older People, Working Paper 2, Poverty and Social Exclusion in the UK Project
Links: Paper
Date: 2011-Jul
A briefing paper examined the exclusion of older people in European countries from material resources. Eastern European countries fared much worse in terms of capability deprivation of older people, as distinct from income deprivation.
Source: Asghar Zaidi, Exclusion from Material Resources Among Older People in EU Countries: New evidence on poverty and capability deprivation, Policy Brief 2, European Centre for Social Welfare Policy and Research (Vienna)
Links: Paper
Date: 2011-Jul
The coalition government announced that it was introducing a new way of measuring older people's material quality of life. A 'material deprivation' indicator would use a set of 15 goods, services, and experiences that were judged to be the best way of identifying deprivation – such as whether someone could replace a cooker, take a holiday away from home, or go out socially at least once a month.
Source: Press release 9 May 2011, Department for Work and Pensions
Links: DWP press release
Date: 2011-May
A paper examined household participation in voluntary individual retirement accounts in 11 European countries (not including the United Kingdom). High wealth and income increased the probability of owning such accounts across most countries, suggesting that the schemes would do little to tackle pensioner poverty.
Source: Julia Le Blanc, The Third Pillar in Europe: Institutional factors and individual decisions, Discussion Paper 09/2011, Deutsche Bundesbank
Links: Paper
Date: 2011-May
An article examined the relationship between poverty in older age, pension receipt, and the role of social policy formulation with particular reference to New Labour governance. It then considered the implications for social work practice.
Source: Liam Foster, 'Older people, pensions and poverty: an issue for social workers?', International Social Work, Volume 54 Issue 3
Links: Abstract
Date: 2011-May
A paper examined the implications of new legislation ending the effective requirement to purchase an annuity by age 75. The 'vast majority' of people aged between 55 and 75 in 2010 – particularly those on lower earnings with small pension pots – were likely to find that annuitizing was still the safest and most appropriate option for converting their defined-contribution pension savings into a retirement income.
Source: Daniela Silcock, Daniel Redwood, and John Adams, Retirement Income and Assets: The implications of ending the effective requirement to annuitise by age 75, Pensions Policy Institute
Links: Report | PPI press release
Date: 2011-Apr
The government published a Green Paper on the future of the state pension system. It set out two options for reform, both of which could be delivered on a cost-neutral basis:
• The first option would accelerate the pace of existing reforms so that the state second pension would become flat-rate by 2020 instead of the early 2030's. This would give people a clearer idea of the state pension they would get in retirement, as they would receive a set amount of pension for each qualifying year. At the end of transition, all those with a full contribution record would build up the same state pension, estimated at around £140 per week, albeit through two tiers.
• The second option would combine the basic state pension and the state second pension into one single-tier state pension. Future pensioners with at least 30 qualifying years would receive the same flat-rate pension, estimated at £140 per week – with this payment being set above the basic level of support provided by pension credit.
Source: A State Pension for the 21st Century, Cm 8053, Department for Work and Pensions, TSO
Links: Green Paper | Hansard | DWP press release | IFS press release | IOD press release | NAPF press release | NPC press release | Professional Pensions report
Date: 2011-Apr
The government responded to the results of a call for evidence on early access to pension savings. Following consideration of the responses, it had concluded that early access to pension savings should not be considered at the present time. There was 'limited' evidence that allowing early access would have a positive effect on overall pension contribution levels or provide significant help to individuals facing financial hardship.
Source: Press release 19 April 2011, HM Treasury
Links: HMT press release | Summary of responses
Notes: Call for evidence
Date: 2011-Apr
A briefing paper examined how pension credit worked, and some of the issues raised in connexion with it.
Source: Djuna Thurley, Pension Credit, Standard Note SN/BT/1439, House of Commons Library
Links: Briefing paper
Date: 2011-Mar
A briefing paper examined government plans to raise the state pension age.
Source: Djuna Thurley, State Pension Age, Standard Note SN/BT/2234, House of Commons Library
Links: Briefing paper
Date: 2011-Feb
A think-tank paper said that the government could save £16 billion per year by cutting non-means-tested benefits to older people and reforming the state pension system. Older people enjoyed a privileged position: the non-means-tested benefits they received had not been removed or reduced under existing public spending plans, and the basic state pension was planned to increase above inflation. They also received particularly favourable treatment in the tax system, with higher personal allowances than younger people and even a marriage allowance if one partner was over 75.
Source: Philip Booth and Corin Taylor, Sharing the Burden: How the older generation should suffer its share of the cuts, Discussion Paper 34, Institute of Economic Affairs
Links: Paper | IEA press release | NPC press release
Date: 2011-Feb
A paper used data from the English Longitudinal Study of Ageing to examine how lifetime earnings related to financial resources in retirement. There was, as expected, a positive correlation: but there was also substantial dispersion in retirement income and retirement wealth among people with similar lifetime earnings. The retirement resources of single women were far less well explained by their own lifetime earnings than those of couples or single men – possibly because they were explained by the lifetime earnings of their former spouses.
Source: Antoine Bozio, Carl Emmerson, and Gemma Tetlow, How Much Do Lifetime Earnings Explain Retirement Resources?, Working Paper 11/02, Institute for Fiscal Studies
Date: 2011-Feb
