The latest trends in government reforming the pension system in Great Britain

This article examines the evolution of the United Kingdom pension system, which is considered one of the oldest and most effective in Europe. The author emphasizes that despite its long history of operation, the pension system is constantly changing under the influence of demographic and socio-economic challenges. One of the main problems in the pension system is the growing aging of the population, which increases the burden on social security payers and the state budget, from which the basic pension is financed. In this regard, attention is focused on the need for continuous improvement of pension mechanisms. The paper examines the three-tier structure of the British pension system: the basic pension, state retirement pensions and non-state savings programs. The study indicates that due to demographic problems (population aging), there is a gradual transition to defined contribution schemes and a decrease in the prevalence of defined benefit schemes. Considerable attention is paid to studying the impact of automatic registration of employees in pension programs, which has significantly increased the coverage of the population with pension savings. Of particular interest for the study are statistical data on the increase in the number of participants in pension programs and the increase in the volume of investments in pension funds. The author draws attention to the problems of insufficient contributions in the non-state pension sector, an increase in the share of self-employed persons without pension protection, as well as the future consequences of raising the retirement age for women. It is noted that such reforms have had a negative impact on low-income households and have led to an increase in poverty among older women. The article concludes that in the UK the highest risks in terms of demographic pressure are borne by the younger generation. However, the positive point is that it is the young people who have more time to adapt, and the state – to take further steps to reform the pension system, in particular, in terms of adjusting public policy to create fairer conditions for pensioners in the future.