, Uk Governments Have Encouraged Working Individuals to Make Private Provision for Their Pensions. Discuss Whether This Is Likely to Reduce Poverty in the Uk in the Next 50 Years.

Topics: Retirement, Pension, Old age Pages: 2 (614 words) Published: April 8, 2013
Poverty in the UK has always been a problem. However, over the last 30 years, it has become an increasing priority for the UK government. Although the government are able to provide an adequate state pension, for many, it is not enough to sustain their previous standard of living while they were in work. With the value of the savings of many pensioners gradually decreasing, state benefits are becoming more important as retired workers get older, but as the population increases, the UK government are struggling to maintain the welfare of the elderly population

On the one hand it can clearly be argued that although state provided pensions are adequate, they may not necessarily always suit the lifestyles of all elderly people in the UK. If working individuals make private provision for their pensions, this would ensure that workers would get a higher rate of pension benefit when they are older. As figure 7 allows us to understand, after the age of 60, average incomes for both men and women begin to fall very low with women’s average incomes when they are aged 65-69 being only around £105 a week. Older people who are no longer in employment make up much of those in the lower income categories, but if they are persuaded by the UK government to have made private provision for their pensions, then when they are retired and their main income comes from their pensions, they would be able to maintain a higher standard of living rather than one from a low but adequate state pension.

However, although the UK government may be putting a lot of government revenue into campaigns to try and persuade people, the fact that poverty in older people is still a huge problem, we can understand that workers are not being sufficiently persuaded to make private provision for their pensions. Perhaps the government revenue being spent on these campaigns would be better well spent on increasing the pensions of current retired workers. In today’s society, many workers only focus on...
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