An Intergenerational Contract: Policy Recommendations for The Future of The State Pension

Phoenix Insights

The state pension has changed considerably over the last 75 years in response to societal and public needs, with the most recent reforms introduced in April 2016 designed to simplify the system.

The state pension plays an essential role in the lives of millions of people in the UK. It is the biggest single part of the social security system and currently, half of pensioners derive nearly two-thirds (64%) of their income from benefits relating to state pension.

It is also an important part of an intergenerational social contract, helping to reduce poverty in old age, paid fr from contributions from people in working age. It has been serving this function for 75 years, and yet it is a topic that many people are not actively engaged with. We had a large-scale public debate on the topic with the Pension Commission chaired by Adam Turner from 2002 to 2006. Despite two recent independent reviews of state pension age, there has been relatively little public engagement on the subject.