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Additional resources for Ageing And Employment Policies ( Vieillissement et Politiques de L'Emploi): United Kingdom (Ageing and Employment Policies)
Future generations of younger individuals may have to bear the brunt of any financial requirements that stem from the expected swell of retirees and elderly people. Consequently, the transition to an aged society may create intergenerational tensions and inequities. Second, in the context of financial requirements, demographic trends of this nature often have their most immediate and visible impact on the funding of public pensions. 2 At the same time, the United Kingdom stands out as having a comparatively high level of private pension coverage and consequently the 5% figure underestimates the total cost to society of pension provision requirements.
The system is financed on a pay-as-you-go basis, with contribution rates set at a level broadly necessary to meet expected benefit expenditure in the same year, after taking account of other payments and receipts and to maintain a working balance. There is a significant array of means-tested benefits available to lower income pensioners. The second tier is mandatory, although there is a wide range of choices over the type of schemes in which individuals can participate. The State second-tier pension is financed on a pay-as-you-go basis, as are most occupational pension schemes offered to public sector workers.
8 reiterates the importance of long-term illness as a primary determinant of inactivity among older people who do not want work. In fact, before the SPA more than half of inactive older men and one-third of older women cite long-term illness as a reason for not wanting to work. Moreover, as both men and women approach their respective SPAs, retirement also becomes an important factor of why older people do not want work. The importance of these two factors in determining labour market participation has important implications within the social welfare system.
Ageing And Employment Policies ( Vieillissement et Politiques de L'Emploi): United Kingdom (Ageing and Employment Policies) by Organization for Economic Cooperation &