Welfare Reform on the Web (July 2008): Pensions - overseas

Pension reforms and saving for retirement: comparing the United Kingdom and Italy

R. Adami and O. Gough

Policy Studies, vol. 29, 2008, p. 119-135

Increasing longevity and falling fertility rates have prompted European governments to shift responsibility for funding retirement income from the state to the individual. Governments from both ends of the political spectrum are committed to the creation of sustainable pension systems through private saving for retirement. This article uses a quantitative approach to investigate individual saving behaviour in Italy and the UK and presents evidence of the factors determining saving for retirement in the two countries. Results show a common understanding of the need to save for retirement among young, middle-income groups, but that the English respondents actually save more than the Italians.