IFS launch: How have older households been affected by the financial crisis? How prepared for retirement are those approaching State Pension Age?

This launch event will provide an overview of two papers, presented by IFS researchers. The papers look at the effect of the financial crisis on older households in England and the adequacy of retirement savings of those approaching state pension age. Following presentations from IFS researchers, the Rt. Hon. James Purnell, former Secretary of State for Work and Pensions, will respond to findings and time will be allowed for questions from attendees.

The effect of the financial crisis on older households in England
Asset prices fell substantially in the UK during 2008–09. Using information from a survey that was in the field at the time, combined with information on the same individuals from before the crisis struck, we document the effect of the crisis on the finances of those aged 50 and over in England, and estimate its impact on household consumption and individual expectations of the future.

The adequacy of retirement savings of those approaching the state pension age
We examine the financial circumstances of those aged between 50 and the State Pension Age in order to assess the likely adequacy of their resources in retirement. Two concepts of adequacy are considered – the first concerns the risk of having to rely on the state to attain a minimum level of income in retirement, the second concerns the risk of income falling precipitously as individuals move from paid work to retirement.