Exploring the implications of higher pension contributions in the UK
In collaboration with Royal London
Most private sector employees fail to save adequately for retirement, despite the implementation of automatic enrolment and recent legislation to expand the scope of this scheme. In this study, Oxford Economics has collaborated with Royal London to assess the impact of a range of mandated pension contribution increases at the household and macroeconomic level.
Our analysis indicates that only 40% of households with a pension in a defined contribution (DC) scheme will be on track for a “moderate” lifestyle in retirement by 2040. We show that higher pension contributions could improve the adequacy of pension savings and boost UK GDP by £0.4 to £7.4 billion in 2040, compared to our baseline. However, we also highlight that poorer households may find it challenging to afford higher pension contributions―an important consideration for any potential policy reform.
The experts behind the research
Our economic consulting and macro consulting teams are world leaders in quantitative economic analysis and original, evidence-based research, working with clients around the globe and across sectors to build models, forecast markets, run extensive surveys, and evaluate interventions using state-of-the art techniques. Lead consultants on this project were:
Ben Skelton
Lead Econometrician, Economic Consulting
Henry Worthington
Director, Economic Consulting
Tags:
You might be interested in
Zalando’s Economic Impact on the European Economy
Oxford Economics was commissioned by Zalando to produce an assessment of the company’s economic impact. The report, “The Economic Impact of Zalando in Europe” highlights Zalando's significant contributions to the European economy in 2023.
Find Out More
The Economic Impact of the British Army
This study, commissioned by the British Army, assesses both the long-term contribution the organisation makes to the UK's productive capacity and its UK economic footprint in 2023/24.
Find Out More
Economic Impact of Virgin River Season Five in British Columbia
This study, commissioned by the Motion Picture Association (MPA) – Canada, focuses on the production of the fifth season of the show "Virgin River", and analyzes its total economic impact in British Columbia in 2022. The study also considers the wider impact of the show by boosting film-induced tourism and promoting the local film industry.
Find Out More
The rise of experiences in APAC travel: an assessment of Klook’s socio-economic impact
This study highlights how Klook's innovative travel booking platform is contributing to the tourism economy in Asia Pacific.
Find Out More