Working Paper: NBER ID: w9556
Authors: Richard Disney; Carl Emmerson; Sarah Smith
Abstract: The late 1980s saw a major shift in pension provision in the United Kingdom, when for the first time individuals were permitted to opt out of part of the social security program into individual retirement saving accounts (Personal Pensions). At the same time, membership of company-provided pension plans (occupational schemes) was made voluntary. The paper explores the possible impact of these, and other related changes in social security in the 1980s and 1990s in the UK, on household saving rates, on current and future public finances, on retirement, and on the job mobility of individuals covered by company pension plans.
Keywords: No keywords provided
JEL Codes: H2
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Personal pensions introduction in 1988 (H55) | Increase in household saving rates (D14) |
| Personal pensions introduction in 1988 (H55) | Decrease in household saving rates (D14) |
| Greater contracting out (L33) | Increased income inequality (D31) |
| Personal pensions (H55) | Greater job mobility (J62) |
| Contracting-out arrangements (M55) | Increase in payroll tax rates by 2-3 percentage points (H29) |