"This reform reduces one arbitrary distinction in the tax system while increasing another. A simpler system of pensions taxation is possible." 📰 Read @matthewoulton.bsky.social & @laurenceobrien.bsky.social's article in FT Adviser on the latest pension tax reform: www.ftadviser.com/content/387f...

Pensions tax reform is a step in the wrong direction

In last November’s Budget the chancellor announced a significant change to the taxation of pensions.

ftadviser.com

How is wealth distributed in the UK and how has this changed? Currently, official statistics don't give a good answer: they calculate pension wealth in a way that's inconsistent over time and with how other assets are valued. New @theifs.bsky.social report with Isaac Delestre fixes this: 🧵

The Institute for Fiscal Studies@theifs.bsky.social · 4mo ago

NEW: The gap in wealth between old and young over the 2010s has been overstated by official statistics. Isaac Delestre and @laurenceobrien.bsky.social's new report shows how wealth is distributed in the UK using a new and consistent methodology for calculating pension wealth:

From next Monday, the state pension age (SPA) will start gradually going up again from 66 to 67, affecting people born on or after 6 April 1960. What is the rationale for this? What effects might it have on people? And should we expect any further increases? [THREAD]

The Institute for Fiscal Studies@theifs.bsky.social · 4mo ago

NEW: The state pension age is going up again this month, increasing from 66 today up to 67 by early 2028. 📗 Jonathan Cribb, @heidikarj.bsky.social and @laurenceobrien.bsky.social’s new briefing explains why and what the evidence tells us about its potential effects: ifs.org.uk/articles/sta...

I had a great time chatting about older people with @timharford.ft.com on BBC4 More or Less. The starting question was – are one in four pensioners really millionaires? Quick thread below: www.bbc.co.uk/sounds/play/...

More or Less - The Stats of the Nation - Older People, Education, Prisons and the Weather - BBC Sounds

Tim Harford explores the stats on pensioners, exams, justice and climate change.

bbc.co.uk

Today the government announced more detail on how they plan to tackle the large number of small pots in the UK pension system. The reforms are due to be announced in the upcoming Pension Schemes bill this spring. A few thoughts on why this matters and what was announced. 👇

We've built a new IFS tool which can be used to explore what the government spends money on, and where in the UK benefits from that spending. Here it is: ifs.org.uk/calculators/.... Short thread on what you can do with the tool:

Where and how does the government spend its money? | Institute for Fiscal Studies

Explore how and where the government spends money, and how this has changed over time, in all regions and nations of the UK

ifs.org.uk

The Institute for Fiscal Studies@theifs.bsky.social · last yr.

NEW: Where and how does the government spend its money? @beeboileau.bsky.social, @maxwarner.bsky.social and @benzaranko.bsky.social's new interactive tool allows you to explore where and how the government spends money, over time and across the UK. 📊 Explore the data: ifs.org.uk/calculators/...

State pension age starts rising again in April 2026. Most people in their early 60s know their state pension age, but a significant minority are incorrect or unaware. This is worrying as people may base retirement and saving decisions on incorrect information. Short thread👇

The Institute for Fiscal Studies@theifs.bsky.social · last yr.

NEW: One-in-six of those with a state pension age between 66 and 67 – around 130,000 people – either underestimate or do not know when they’ll be able to claim their state pension. @heidikarj.bsky.social's new Pensions Review briefing looks at people's state pension age awareness: [THREAD]

New report out today with colleagues @theifs.bsky.social and funded by @jrf-uk.bsky.social and @healthfoundation.bsky.social. We look at what we know about the role of changing health and reported disability in the 38% rise in people claiming disability benefits since the pandemic. A 🧵 [1/10]

NEW: Ending the small pots epidemic @laurenceobrien.bsky.social writes about why the proliferation of small deferred pension pots is burdensome, and the policy options, for Pensions Age:

Guest comment: Ending the small pots epidemic

IFS research economist and report author, Laurence O’Brien, takes a closer look at recent research on the small pots epidemic, arguing that it is

buff.ly

NEW: Median public sector pay is up by 5% in Scotland since 2019, in contrast to no UK-wide increase. Jonathan Cribb, Magdalena Domínguez and @laurenceobrien.bsky.social's new Scottish Budget report analyses Scottish public sector employment and pay, and the policy implications: [THREAD: 1/7]

There are over 12 million DC pension pots worth <£1k. This creates complexity for savers and increases costs for providers. The government should help savers out by ensuring that their deferred small pension pots are consolidated together automatically. See 👇 for more details

The Institute for Fiscal Studies@theifs.bsky.social · last yr.

NEW: Without policy action, many workers will have their savings scattered across several small pension pots from different jobs. Our new Pensions Review report, funded by @financialfairness.bsky.social, looks at why this causes problems and policy options: [THREAD: 1/8]

A proper piece of work, this. Some great analysis of how households responded to the energy price shock and how effective government policy was at shielding them. The implications for HM Treasury are pretty clear: build a better database! It could save you billions! ifs.org.uk/publications...

The welfare effects of price shocks and household relief packages: Evidence from the European Energy Crisis | Institute for Fiscal Studies

How should governments respond to rapid increases in the cost of living driven by shocks to the prices of staple goods?

ifs.org.uk

The Institute for Fiscal Studies@theifs.bsky.social · 2y ago

NEW: The government's £35bn energy support packages in 2022–23 significantly alleviated household losses, but were poorly targeted and encouraged energy overuse. @peterlevell.bsky.social, Martin O'Connell and Kate Smith's paper finds that a better design could have saved £4.5bn:

New @theifs.bsky.social research out today! We show that Pakistani and Bangladeshi employees are almost twice as likely to opt out of their workplace pension as other employees. This can have big implications for retirement incomes and evidence points to Islamic religious beliefs as a key driver.

The Institute for Fiscal Studies@theifs.bsky.social · 2y ago

NEW: Employees of Pakistani or Bangladeshi ethnic origin are almost twice as likely to opt out of workplace pensions as other employees. THREAD on Jonathan Cribb, @laurenceobrien.bsky.social and @david-sturrock.bsky.social’s new report on gaps in pension participation between ethnic groups. [1/9]

EVENT: Ethnicity gaps in pension participation Thurs 23 Jan 2025 | 2pm – 3pm | Online We present new findings on ethnic gaps in pension participation rates, with Taha Choukhmane, Athina Vlachantoni, @laurenceobrien.bsky.social and Carl Emmerson. Sign up here: ifs.org.uk/events/ethni...

Ethnicity gaps in pension participation | Institute for Fiscal Studies

IFS researchers will present new findings exploring ethnic gaps in pension participation rates following the rollout of automatic enrollment.

ifs.org.uk

New working paper out! Governments in many countries have raised early retirement ages (ERAs) in response to public finance pressures from ageing populations. These policies have consistently been found to lead to increased employment rates among older workers. This paper asks: why? 🤔

The Institute for Fiscal Studies@theifs.bsky.social · 2y ago

NEW #IFSWorkingPaper: Why does raising the early retirement age affect employment? Courtney Coile, Jonathan Cribb, Carl Emmerson & @laurenceobrien.bsky.social study ten years of UK reforms increasing the early retirement age for women to assess why workers delay retirement: https://buff.ly/4fWo2Wy