The United Kingdom 2010

The United Kingdom’s retirement income system comprises a flat-rate basic pension supported by an incometested pension credit; an earningsrelated pension based on revalued average lifetime salary; and voluntary private pensions, which may be occupational or personal. Most of the larger voluntary occupational pensions are currently contracted out of the earnings-related social security benefit.

The overall index value for the British system could be increased by:

• raising the minimum pension for low-income pensioners;
• introducing a level of mandatory funded contributions;
• increasing the coverage of employees in occupational pension schemes; and
• raising the level of household saving.

The British index value fell slightly from 63.9 in 2009 to 63.7 in 2010 due to the effects of the global financial crisis which were offset by the positive effects of the new indicators.