Saving for retirement: Implications of pensions reforms on financial incentives to save for retirement
This publication is the report of the Savings Incentives Work Programme – a year-long programme to analyse the financial incentives to save for retirement. The work was led by the Department for Work and Pensions working in close collaboration with many prominent stakeholders including consumer, employer and pensions industry representatives, pensioner interest groups, analytical and academic experts and politicians from each of the main political parties. It looks at the impact of saving under the system laid out in the Pensions Acts 2007 and 2008, and also looks at the pros, cons and wider impacts of measures proposed by stakeholders to improve the financial incentives to save. It also summarises research describing what individuals see as important when deciding whether or not to save, and their understanding of and responses to financial incentives.
This report focuses on the expected 'payback' from saving in a pension – the increase in retirement income per £1 contributed – for illustrative individuals and for the whole population of savers. A previous DWP report, Estimating the economic and social welfare impacts of pension reform, presents analysis of the wider benefits of saving, including the welfare gains from income smoothing.
February 2009 152 pages 297x210mm
ISBN 978-1-84712-485-2
(1.55MB)