The United Kingdom’s retirement income system comprises a flat-rate basic pension supported by an income-tested pension credit; an earnings-related pension based on revalued average lifetime salary; and voluntary private pensions, which may be occupational or personal. Most of the larger voluntary occupational pensions are currently contracted-out of the earnings-related social security benefit.   The following table shows the position of the United Kingdom when compared to the 17 other countries.

The overall index value for the British system could be increased by:

• raising the minimum pension for low-income pensioners
• introducing a level of mandatory funded contributions
• increasing the coverage of employees in occupational pension schemes
• raising the level of household saving

The British index value fell from 66.0 in 2011 to 64.8 in 2012 primarily due to a significant reduction in pension coverage as indicated in the latest OECD information, where they relied on survey data rather than the previously used administrative data which had multiple counting issues.