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Heidi Karjalainen @heidikarj.bsky.social · 03/09/2026

This, alongside many other bits of recent IFS analysis, are covered in a set of slides on the key issues facing the Pensions Commission as they move towards designing policy reforms: ifs.org.uk/publications... With @laurenceobrien.bsky.social and Jonathan Cribb at @theifs.bsky.social

ifs.org.uk

IFS analysis on issues facing the Second Pensions Commission | Institute for Fiscal Studies

As the Pensions Commission moves towards developing policy recommendations, this presentation discusses some of the key trade-offs it faces.

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Heidi Karjalainen @heidikarj.bsky.social · 03/09/2026

In the UK, people can't claim the state pension early, and working-age benefits are much less generous than pensioner benefits. So access to private pensions before state pension age is a key feature of the system, helping people bridge the gap from paid work to retirement.

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Heidi Karjalainen @heidikarj.bsky.social · 03/09/2026

The Second Pensions Commission's interim report seems to worry about people accessing private pensions well before state pension age. Of course there are good reasons for caution. But as shown here, early 60s are also a period of particularly low incomes and high poverty.

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Heidi Karjalainen @heidikarj.bsky.social · 18/05/2026

We understand that policy proposals will be covered in the final report next year. But it's interesting to see this early coverage on the gender pension gap referring to a “joined-up approach”, and “reforms to pensions policy and labour market, including access to childcare”.

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Heidi Karjalainen @heidikarj.bsky.social · 18/05/2026

Our report also talks more broadly about how labour market patterns through working life shape retirement outcomes. It's not just about women having children – for example, long spells of self-employment are also associated with having lower incomes in retirement.

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Heidi Karjalainen @heidikarj.bsky.social · 18/05/2026

The Commissioners point to our finding which shows that after the birth of a first child, women’s average pension contributions fall, and it takes around 6 years for those to recover to pre-motherhood levels. Over the same period, men’s average contributions continue increasing.

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Heidi Karjalainen @heidikarj.bsky.social · 18/05/2026

Pleased to see our @theifs.bsky.social work being highlighted by the Pensions Commissioners in @theguardian.com coverage today. The research was commissioned by DWP to inform the Pensions Commission, and looks at how working lives shape pension saving and outcomes. theguardian.com/money/2026/m...

theguardian.com

Government-backed Pensions Commission calls for action on gender savings gap

Body says, on average, British women approaching retirement have half private pension savings of men – £81,000 versus £156,000

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Heidi Karjalainen @heidikarj.bsky.social · 12/03/2026

I wrote a piece for Pensions Expert on the rise in state pension age to 67 starting in April. It's worth paying attention to how this lands – for households but also in public debate. That could shape when/how increases to 68 and beyond get legislated. www.pensions-expert.com/law-and-regu...

pensions-expert.com

State pension age of 67 is coming – what to watch as it rolls out

Heidi Karjalainen, a senior research economist at the Institute for Fiscal Studies, explores the imminent state pension age increase as the latest review continues.

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Heidi Karjalainen @heidikarj.bsky.social · 08/01/2026

So as with many headline stats, while this figure is ‘true’ based on the survey data we have, there is a lot of nuance when it comes to understanding what it really means.

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Heidi Karjalainen @heidikarj.bsky.social · 08/01/2026

Also – what a ‘millionaire’ means is changing over time. It refers to a fixed pound amount, so it is a very different thing now than in the past. To be a millionaire in 1990s prices you’d need £2.5m today!

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Heidi Karjalainen @heidikarj.bsky.social · 08/01/2026

And those with defined benefit (final salary) pensions may not realise the value of the guaranteed pension payments until death. To purchase a guaranteed income of £20k per year until death at age 65 (inflation-protected) would currently cost about £370k in the private market.

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Heidi Karjalainen @heidikarj.bsky.social · 08/01/2026

Second, this measure includes housing and pension wealth. People who purchased their homes decades ago will have benefitted from strong house price growth and may be living in high value houses while having modest incomes.

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Heidi Karjalainen @heidikarj.bsky.social · 08/01/2026

Firstly, based on this figure two people living in a household with exactly £1m in wealth would count as two millionaires. If we divide wealth by number of people in the household, we find that 9% of the 65+ live in a household that has >£1m of wealth per person.

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Heidi Karjalainen @heidikarj.bsky.social · 08/01/2026

This figure comes from ONS stats (based on a household survey), which show that 22% of people aged 65+ live in households with more than £1m in wealth. But these people may not all feel as well off as you might think of a millionaire.

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Heidi Karjalainen @heidikarj.bsky.social · 08/01/2026

I had a great time chatting about older people with @timharford.ft.com on BBC4 More or Less. The starting question was – are one in four pensioners really millionaires? Quick thread below: www.bbc.co.uk/sounds/play/...

bbc.co.uk

More or Less - The Stats of the Nation - Older People, Education, Prisons and the Weather - BBC Sounds

Tim Harford explores the stats on pensioners, exams, justice and climate change.

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Heidi Karjalainen @heidikarj.bsky.social · 22/10/2025

Today’s inflation figure of 3.8% will be used for most benefit uprating next April. But state pension will rise in line with triple lock – based on earnings growth of 4.8%. Below is my @theifs.bsky.social piece on issues around the triple lock and what we think is a better alternative.

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Heidi Karjalainen @heidikarj.bsky.social · 08/07/2025

The OBR's Fiscal Risks and Sustainability report is out today with a chapter on the UK's pension system. This is important and timely, setting out key challenges for the future. For proposals on how to address them you should check out our Pensions Review report from last week, thread below 👇

obr.uk

Fiscal risks and sustainability – July 2025 - Office for Budget Responsibility

The latest update of our assessment of the current pressures on the public finances was published in our Fiscal risks and sustainability report. Read the Executive summary for the key points from our ...

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Heidi Karjalainen @heidikarj.bsky.social · 08/07/2025

Had a good chat on @moneybox.bsky.social with @paullewismoney.bsky.social about our Pensions Review work and what we should do about the triple lock and automatic enrolment – you can listen to it here: bbc.co.uk/sounds/play/...

bbc.co.uk

Money Box - Future of Pensions and Heat Networks - BBC Sounds

A wide-reaching report makes recommendations about the future of pensions.

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Reposted by Heidi Karjalainen

David Sturrock @david-sturrock.bsky.social · 13/05/2025

NEW:The government continues to increase the state pension age. Next year it’ll start going up from 66 to 67. Some people choose to - or need to - work longer as a result. Does it run down their health? Or can work keep you young? We investigated for women whose pension age rose in the 2010s… 1/

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Reposted by Heidi Karjalainen

Laurence O'Brien @laurenceobrien.bsky.social · 24/04/2025

Today the government announced more detail on how they plan to tackle the large number of small pots in the UK pension system. The reforms are due to be announced in the upcoming Pension Schemes bill this spring. A few thoughts on why this matters and what was announced. 👇

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Heidi Karjalainen @heidikarj.bsky.social · 07/04/2025

State pension age starts rising again in April 2026. Most people in their early 60s know their state pension age, but a significant minority are incorrect or unaware. This is worrying as people may base retirement and saving decisions on incorrect information. Short thread👇

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Reposted by Heidi Karjalainen

Bee Boileau @beeboileau.bsky.social · 01/04/2025

We’ve written two new reports on the decisions people face when drawing on private pension wealth in retirement & policy reforms that might help improve these decisions. Important to get this right as defined contribution pensions get more important & can now be accessed flexibly. Thread below:

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