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Re: Here comes the tax rises
Like most of these things, it’s not that simple…
https://fullfact.org/online/pensions...s-comparisons/
Quote:
When you just look at public pensions and benefits, UK pensions are considerably lower than those of other major advanced economies.
All the countries listed in the graphic generally have higher public spending on old-age pensions as a proportion of GDP (the size of their economies) than the UK does . Using figures for 2015, the equivalent of 5.2% of UK GDP went into public spending on pensions, compared to 7.7% in Spain, 7.9% in Germany and 12.1% in France.
Those figures are just counting pensions and benefits provided by the state, not occupational pensions or voluntary savings people make.
But that’s only one part of what people get through a pensions system. It doesn’t properly factor in how people’s lifetime earnings can affect their pension entitlements.
The OECD measures what’s called a “pension replacement rate”—which broadly speaking expresses what pensioners receive relative to their previous earnings when working.
UK pensions are relatively low on this measure as well. If you just consider mandatory public and private pensions, an average UK pensioner’s income is worth 29% of their earnings at retirement, compared to 51% in Germany, 75% in France and 82% in Spain.
But pensions in both the UK and Germany tend to get top-ups from voluntary pensions, which pushes their ratios to 62% for the UK and 65% for Germany when included (with the other countries staying the same).
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But jfman has a point - people/countries only get back on what they put into schemes like pensions; other points to bear in mind is that a lot of people who are now pensioners didn’t expect to live as long as is currently forecast (my parents died at 70 & 74), or were on low incomes and/or didn’t have access to pension schemes (my first introduction to Private Pension schemes was in the mid-80s, when I worked for a small Software House (around 150 employees), and they brought one in, which was unusual for smaller companies then).
As I said, it’s not that simple…
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Last edited by Hugh; 15-08-2024 at 09:15.
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