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 United Kingdom||Score||Ranking|
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.