Pensioners: Assets
The question
To ask the Secretary of State for Work and Pensions, whether he has made an (a) estimate of the age of inheritance for the next five decades and (b) assessment of the potential impact of increased longevity on the adequacy of assets held at state pension age for comfortable retirement.
Answered by Torsten Bell
The Department for Work and Pensions has published analysis on the number and proportion of working age individuals who are undersaving for retirement. This analysis is published here: Analysis of Future Pension Incomes 2025 - GOV.UK
This analysis looks at Target Replacement Rates, the percentage of pre-retirement earnings an individual would need to replace to meet an adequate income in retirement, and also at expenditure-based measures of income adequacy in retirement. This analysis includes estimates of longevity as part of assessing the level of savings needed to achieve the various levels of income.
No specific assessment has been made of the age of inheritance.
The Government has also revived the Pensions Commission, with a broad and comprehensive remit to consider the long-term future of our pension system, to ensure it delivers financial security in retirement through a framework that is strong, fair and sustainable. This includes exploring the long-term questions of adequacy and how to improve retirement outcomes for future generations of retirees.
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