House of Commons Library publishes report on international pension comparisons

Article summary

The House of Commons Library has published a report comparing the UK pension system with those of other countries. The analysis reveals that the UK allocates a smaller proportion of its GDP to state pensions and pensioner benefits compared to most advanced economies. The UK's net replacement rate from mandatory pensions for an average earner stands at 54.4%, below the OECD average of 61.4%. In 2022, 14.5% of people aged 66 and over in the UK were living in relative income poverty, ranking 14th highest among 34 OECD countries. Despite these challenges, the UK pension system achieved a 'B' grade in the 2024 Mercer CFA Institute Global Pension Index, indicating a sound structure with areas for improvement.