Making Money Britain's Pension System Is In Danger
28 snips
Nov 10, 2025 Tom McPhail, a pensions expert known for his insights on UK retirement policy, delves into the current pension crisis. He reveals how demographic changes and low private savings are straining the system. McPhail discusses the reluctance of governments to make tough long-term decisions and the potential for a depoliticized pensions commission. He also explores innovative ideas for incentivizing investments, increasing the state pension age, and reforming tax relief to ensure a sustainable future for retirees. This engaging discussion sheds light on the challenges ahead.
AI Snips
Chapters
Books
Transcript
Episode notes
Auto-Enrolment Fixed Participation Not Adequacy
- Auto-enrolment reversed pension decline but contribution levels remain inadequate for most private-sector workers.
- An ageing population plus low savings will sharply increase pension and healthcare costs versus a shrinking tax base.
Public Sector Pension Generosity Gap
- Public sector pensions currently cost about £50bn a year with average contribution rates near 25% of pay.
- That is around four times the private-sector contribution rate, creating a major distributional imbalance.
Bundle Reforms, Don't Tackle Alone
- Put tax relief, public sector pensions and the state pension 'on the table' for a bundled reform package.
- Aim for smaller, shared pain to achieve a fairer, sustainable retirement system.
