Conclusion

The concluding chapter summarizes the book’s main arguments, distilling its implications for how we understand pensions provision, and specifically its relationship to the wider financialization process, capitalist organization, and generational change. It also reflects more explicitly on some of the book’s implicit themes, such as the implications of pensions individualization for women and low earners, and industrial relations. Crucially, this chapter also offers a programme of reforms to overcome pensions imperilment in the United Kingdom, encompassing: expanded coverage for workplace pensions and employer contributions; new forms of state-managed provision in relation to annuities; increasing the state pension’s generosity over time; abolishing pensions tax relief as it currently exists; nationalizing residual defined benefit provision in order to capitalize a new public pension; and establishing transparent processes for aligning retirement ages with demographic change.

Understanding Default Behaviour in Workplace Pensions: Automatic Enrolment in the UK.

This article examines the retirement savings behaviour of twenty-five 30-40 years olds automatically enrolled into a workplace pension scheme. Using qualitative interviews, the paper explores the interaction between savings motivation and willingness to adhere to, or deviate from, the pension scheme defaults. Integrating insights from different savings paradigms, including sociological approaches and behavioural economics, the paper highlights how social motives drove willingness to accept enrolment defaults. Participants’ reactions to the contribution defaults were motivated by a complex combination of factors including anchoring effects, the salience of ageing, and emotional responses such as pride, uncertainty and loss aversion. The author’s main premise is that greater attention needs to be given to the interaction between subjective feelings about saving for retirement and pension scheme design.

Pensions Auto-Enrolment: Unintended Consequences of Regulation and Private Law Remedies

The introduction of auto-enrolment (AE) into workplace pensions in 2012 requires employers to enrol workers into a pension. Employers have significant discretion in this process and rely on the financial services industry to ensure compliance with AE minimum standards. Employers may not always have pension expertise and will engage pension providers for advice on establishing compliant pension arrangements or modifying existing schemes to use for AE. Whilst this policy benefits many, there are a number of negative consequences flowing from the introduction of AE. Examples include employers choosing poorly performing schemes, insufficient protection of free choice and poor default positions replacing active decision making, all of which result in poor value for some employees. The parties' interests may not always be aligned. Despite the minimum criteria, there can be significant variations between fund costs and scheme quality as private sector pensions are frequently used for compliance. Whilst the ability of employees to opt-out provides legitimacy for the regime, the form of implementation and use of defaults erodes the exercise of choice and there are no provisions to encourage engagement and active decision-making by individuals. In addition to this, inadequate advice impacts on the effects of AE for many. For some this means that they pay in less overall than they would have if they had voluntarily chosen to contribute to a plan. This article explores whether further statutory change to the AE regime is required or whether existing private law remedies, with a focus on Scots law, afford sufficient remedies for those suffering loss. If fiduciary, agency, contractual or delictual obligations arise from the AE relationship then this may provide adequate remedies. This article will consider whether fiduciary duties are owed to employees, particularly by the employer (as an agent) to the employee, and the extent of duties owed under the contract of employment.

Workplace pensions and remuneration in the public and private sectors in the UK

We estimate the changing value of workplace pensions in the UK and incorporate their value into an estimate of the public sector pay differential. Falling pension membership in the private sector and growing value of public service pensions led to a significant increase in the estimated public sector pay differential from 1997 to 2009, even though headline pay grew faster in the private sector. From 2009 to 2012, although pay grew faster in the public sector, reforms to public service defined benefit pensions, particularly indexation to the CPI rather than RPI, significantly reduced the public pay differential.

Work, pensions and poverty: a better deal under the next government

Purpose – The purpose of this paper is to explore how the next government could develop a better deal in relation to work, pensions and poverty. The paper argues that given the changing face of poverty, the next government should focus on creating better jobs if it is really to encourage people to work longer and save more for retirement. Furthermore, it could do more to support those who are currently under-saving for retirement. Design/methodology/approach – The paper draws on evidence from a number of recent qualitative and quantitative JRF research reports and government statistical data. Findings – The paper suggests policy recommendations for the next government focused on creating better jobs and helping those on lower incomes increase their pension pots. This includes: ensuring that the minimum wages is set with regard to the changing price of essentials and changing average earnings; raising awareness of the Living Wage and playing a leadership role; industrial strategies for low paid sectors; mid-life career reviews and increased rights for those aged 60 and over; the redistribution of tax relief on pension contributions and the auto-escalation of workplace pensions. Originality/value – This paper looks at the issue of an ageing society, work and pensions through a poverty lens.