Why is there a decline in defined benefit pension plan membership in Britain?

Richard Disney () and Stears, Stears
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Richard Disney: Institute for Fiscal Studies and University of Sussex
Stears, Stears: Institute for Fiscal Studies

No W96/04, IFS Working Papers from Institute for Fiscal Studies

Abstract: The paper compares the change in pension plan coverage in the 1980s in the US and the UK. Like the US, the UK has seen a decline in pension plan membership among men, a growth in the use of defined pension plans, and in the purchase of retirement savings accounts. Changes in workforce composition, in particular the decline in the unionised and public sectors, and legislative changes are important determinants of the trend in the UK. A survey of employers predicts a continued decline in defined benefit plan coverage and a growth of alternative pension arrangements in the next 25 years.

Date: 1996-01-01
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