Pensions and Life-Cycle Savings Profiles in the UK

The goal of this chapter is to provide comparable evidence, based on microeconomic data sources, regarding the lifetimes savings profiles of households in the UK. Many issues related to household saving behavior are still little understood, at least empirically. Despite a vast literature this also remains true for the particular relationship between savings in pension schemes and other household savings. This chapter seeks to further explore this relationship by gathering extensive data related to this issue. In studying household savings, and paying special attention to the impact of pension arrangements, it is important to bear in mind the main features of the economic and demographic environment in the UK. This study uses data from the Family Expenditure Survey (FES) that provides detailed information on characteristics, expenditures, and incomes on all members of participating households.