Retirement in the UK

Posted: 29 Feb 2008

See all articles by James W. Banks

James W. Banks

Institute for Fiscal Studies; The University of Manchester

Sarah Smith

University of Bristol; Institute for Fiscal Studies (IFS)

Abstract

In common with other OECD countries, the UK experienced more than two decades of declining labour-market activity among older men from the 1970s to the early 1990s, a trend that has only recently shown signs of being reversed. Retirement decisions are heavily shaped by institutional context and in the UK this has led to there being two distinct groups with very different "retirement" experiences. At the top of the wealth distribution, early retirement has typically been influenced by private, occupational pensions; at the bottom of the wealth distribution individuals are even more likely to be not working in their 50s, but do not typically define themselves as retired, and draw on income support, or more usually, disability benefits. Policy-makers keen to increase effective retirement ages will need to consider the very different circumstances of these two groups.

Suggested Citation

Banks, James W. and Smith, Sarah, Retirement in the UK. Oxford Review of Economic Policy, Vol. 22, No. 1, pp. 40-56, 2006, Available at SSRN: https://ssrn.com/abstract=906424

James W. Banks (Contact Author)

Institute for Fiscal Studies ( email )

7 Ridgmount Street
London, WC1E 7AE
United Kingdom

The University of Manchester

Oxford Road
Manchester, N/A M13 9PL
United Kingdom

Sarah Smith

University of Bristol ( email )

University of Bristol,
Senate House, Tyndall Avenue
Bristol, Avon BS8 ITH
United Kingdom

Institute for Fiscal Studies (IFS) ( email )

7 Ridgmount Street
London, WC1E 7AE
United Kingdom

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