UK Savings and Pensions

In: National Institute economic review: journal of the National Institute of Economic and Social Research, Band 190, S. 55-57

Abstract

The lack of savings by the UK personal (and private) sector has been a matter of concern to us for some time, in part because it has been clear that inadequate provision has been made for future pension liabilities. The recently published Turner report has highlighted this problem and suggested that on current commitments some 5.2 per cent more of GDP needs to be directed to pensioners in 2050 than is currently the case. Assets have to be built up to provide this extra income, and increased saving is necessary in order to do this. In this note we consider the macroeconomic impacts of building up assets to ensure that the increasing allocation of income to pensioners that an aging population may require is managed efficiently.