Changes in Pension Provisions and the Individualisation of Retirement Planning

The last three decades have seen crucial changes in welfare policies in Europe. Many of these changes aimed at rendering retirement more financially sustainable to accommodate budgetary needs, particularly after the 2008 crisis, whilst also claiming to protect the older population against poverty. The UK has seen some of the most far-reaching pension reforms, with a clear and consistent focus on financial sustainability of state pensions through the re-balancing of retirement income further towards private sources. The extent and effects of the privatisation, individualization, and financialisation of the pension system, has made the UK a particularly interesting example to study, especially considering how recent reforms have focused particularly on individual retirement planning, which affects the outcomes of different groups in different ways. The financial crises witnessed recently, caused spikes in poverty rates amongst those of working age, while pensioners were relatively insulated owing, mostly, to the social security system in place (Ebbinghaus, 2021). However, the latest Pension Review by the Institute for Fiscal Studies (IFS) shows significant differences in the projected outcomes for future retirees in the UK (O’Brien et al., 2024). Particularly concerning are the widening post-retirement income gaps between genders, different ethnic groups, age cohorts and pre-retirement income groups (Cribb et al., 2023; Cribb et al. 2025). This collection of published studies addresses some of the key questions of academic and practical interest in the field of social policy, with particular focus on the consequences of changes in retirement policies in the UK, and on the factors that affect pension adequacy amongst different socio-demographic groups. Within this thesis, a great deal of attention is afforded to adequacy of retirement planning, after the implementation of reforms towards further privatisation of the pension system that has taken place over many years. The analysis of factors affecting the risk of poverty and inequality amongst different groups of pensioners is particularly important to improve our understanding of gender and ethnicity gaps. The UK provides an appropriate case, owing to its long-term commitment to improving financial sustainability of pensions through privatisation and individualisation of provisions, and the resulting interest from other European countries considering similar policies to reduce their public pension expenditures (see widening access to occupational pensions through auto-enrolment, to be implemented in the Republic of Ireland in 2025) (Foster et al., 2021). The studies published are all empirical in nature and use data collected mostly over the last two decades. At the time when the studies took place, the UK had some of the most comprehensive datasets on ethnic minorities in Europe, providing the opportunity to undertake robust analysis. Collectively, these studies provide strong evidence of increasing risk of poverty and vulnerability in retirement, particularly amongst women and minority ethnic groups, they reflect on the possible causes, and on how to address them. They also shed light on retirement planning and financial exclusion amongst ethnic minorities, with strong evidence that, despite a high degree of heterogeneity, ethnicity, as well as gender, are associated with higher levels of at-risk-of-poverty after retirement and overall financial exclusion. This is of great interest and concern from a social policy perspective, given the significance of these groups and their increasing contribution to the economy.