Follow us
Publications Commentary Research People Events News Resources and Videos About IFS
Home Publications Pensions and labour-market participation in the United Kingdom

Pensions and labour-market participation in the United Kingdom

Journal article | American Economic Review

In this paper we begin by describing the labour market behaviour of individuals around pension age. We also consider the coverage of the various parts of the social security system. We go on to explain the structure of state pensions in the United Kingdom and compute the incentives for retirement that the structure creates, focusing on early retirement and the role of disability benefits, which are especially relevant for lower-skilled workers. We compare these incentives with those facing workers with private occupational schemes who now make up the majority of older workers close to retirement. The structure of incentives is found to match well with the observed patterns of labour market participation in the data.

More on this topic

Newspaper article
External publication
Aligning tax rates between employees and the self-employed would reduce inequity while encouraging entrepreneurial risk-taking, says Stuart Adam, senior research economist at the Institute for Fiscal Studies.
The parts of the UK tax system that dictate how different forms of income are taxed are of central importance and are not fit for purpose.
External publication
This paper asks when a wealth tax would in principle be a desirable part of the tax system, setting aside the practicalities and politics that would be crucial in reality.
Press release
One in eight older workers (13%) have already changed their planned retirement age as a result of the coronavirus pandemic.