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What pension should the state provide?

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Author Info

  • Andrew Dilnot

    (Institute for Fiscal Studies and University of Oxford)

  • Paul Johnson

    (Institute for Fiscal Studies)

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    Abstract

    Social security spending accounts for almost 30 per cent of public expenditure and is projected to reach £74.7 billion in 1992-93. Almost half of this spending goes to the elderly. The cost of social security to the elderly has grown steadily in the post-war period, and will continue to grow given current policy, as the number of elderly people increases. The implied tax burden on those of working age will grow even more quickly than spending, unless the basic state pension is allowed to continue dropping relative to wages, as the number of those of working age, relative to the number of pensioners, declines in the next century.

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    Bibliographic Info

    Article provided by Institute for Fiscal Studies in its journal Fiscal Studies.

    Volume (Year): 13 (1992)
    Issue (Month): 4 (November)
    Pages: 1-20

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    Handle: RePEc:ifs:fistud:v:13:y:1992:i:4:p:1-20

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    1. Vanessa Fry & Graham Stark, 1991. "New rich or old poor: poverty, take-up and the indexation of the state pension," Fiscal Studies, Institute for Fiscal Studies, vol. 12(1), pages 67-77, February.
    2. McClements, L. D., 1977. "Equivalence scales for children," Journal of Public Economics, Elsevier, vol. 8(2), pages 191-210, October.
    3. Richard Disney & Edward Whitehouse, 1991. "How should pensions in the UK be indexed?," Fiscal Studies, Institute for Fiscal Studies, vol. 12(3), pages 47-61, August.
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