Is the Defined Contribution pension market functioning effectively? Could further reform address market failures and improve outcomes? How could collective Defined Contribution schemes help to achieve better outcomes for members?

Background

This encompasses priorities around:
- reducing the percentage of pensioners in absolute low income after housing costs
- Increasing the total number of people automatically enrolled in workplace pensions and building retirement savings
- continuing to explore how to make it easier for self-employed people to save for retirement

Next steps

Send correspondence and further questions to evidence.strategyteam@dwp.gov.uk.

Source

This question was published as part of the set of ARIs in this document:

DWP Areas of Research Interest 2023 GOV UK

Related UKRI funded projects


  • Dynamics in private pension saving across the income distribution

    How much people save for their retirement is extremely important. It matters not only for individuals' wellbeing but also for society in general because those with insufficient private savings are more reliant on governm...

    Funded by: ESRC

    Lead research organisation: Institute for Fiscal Studies

    Why might this be relevant?

    The project investigates the dynamics of private pension saving, including the impact of auto-enrolment and the saving habits of the self-employed, which partially addresses the question about the effectiveness of the Defined Contribution pension market and potential reforms.

  • The adequacy and optimality of retirement provision: household behaviour and the design of pensions

    The UK is currently in the midst of sweeping changes to both state pension provision and private pension arrangements. Recent policy reforms include the introduction of the 'new state pension' from April 2016, further in...

    Funded by: ESRC

    Lead research organisation: Institute for Fiscal Studies

    Why might this be relevant?

    The project studies the implications of recent policy reforms and long-term trends on household saving and retirement decisions, which partially addresses the question about the effectiveness of the Defined Contribution pension market and potential reforms.

  • The Thatcher pension reforms and their consequences

    Since the end of 2006 there has been a widespread consensus that Britain's pension system is seriously dysfunctional. The debate over the nature and extent of the 'pensions crisis,' and over ways in which it might best b...

    Funded by: AHRC

    Lead research organisation: University of Bristol

    Why might this be relevant?

    The project examines the historical roots of the pension problem and the policy changes of the 1980s, which partially addresses the question about the effectiveness of the Defined Contribution pension market and potential reforms.