economy
Britain pioneered the comfortable retirement – but that golden age is coming to an end
The once inexorable rise in retiree living standards since the second world war has broken down. Can we keep the dream alive for future generations?
TL;DR
- The traditional image of a comfortable retirement in Britain is a relic of the past, influenced by post-war economic conditions.
- Improvements in quality of life and the establishment of state and occupational pensions made leisured retirements common after WWII.
- Economic downturns from the 1970s onwards led to increased income inequality and risks associated with private pensions.
- The baby boomer generation was the wealthiest and best-educated cohort of retirees, benefiting from strong pensions and rising home ownership.
- Recent debates have framed older generations as a burden on younger ones, straining the generational contract.
- Generation X and younger cohorts face smaller pension pots due to the shift from defined-benefit to defined-contribution pension schemes.
- The future points towards a renewed era of 'old-age austerity', necessitating a change in how we view and plan for later life.
- Rethinking life course planning to blend work, care, learning, and leisure is proposed as a way to sustain meaningful lives into old age.