The UK state pension is an unfunded system, meaning current workers' taxes pay retirees' pensions.
It's not a savings account where your contributions are stored and returned later.
insights INSIGHT
Rising Pension Age
The state pension age is rising due to increased life expectancy and the retirement of baby boomers.
It is currently 66 and is projected to reach 68 by the mid-2040s.
question_answer ANECDOTE
Early UK Pensions
King Charles II established the Royal Hospital Chelsea in 1681 for injured servicemen.
This evolved into a military pension scheme, eventually expanding to all servicemen in 1859, and influencing the 1908 old-age pension for those over 70.
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Why is it so hard to save for retirement? Will future generations even get a pension? Why is the pension age rising and what is the state pension age? Tim Harford explains the problem an aging population is causing for the state pension and explores the gender pension gap. Economic historian Victoria Bateman tells the story of the very first pensions in the UK.
Everything you need to know about the economy and what it means for you. This podcast will cut through the jargon to bring you clarity and ensure you finally understand all those complicated terms and phrases you hear on the news. Inflation, GDP, Interest rates, and bonds, Tim Harford and friends explain them all. We’ll ensure you understand what’s going on today, why your shopping is getting more expensive or why your pay doesn’t cover your bills. We’ll also bring you surprising histories, from the war hungry Kings who have shaped how things are counted today to the greedy merchants flooding Spain with Silver coins. So if your eyes usually glaze over when someone says ‘cutting taxes stimulates growth’, fear no more, we’ve got you covered.
