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COUNTRY SUMMARIES
 

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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 KingdomScoreRanking
Overall Index

64.8

7th

Sub-indices
Adequacy

68.1

8th

Sustainability

46.5

10th

Integrity

85.0

3rd

 

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.