Taxation Archives - Pension Policy International

07OctOctober 7, 2026

The Pensions Brief: October 2026

By Andrew Block & Katherine Carter The Pensions Regulator (TPR) has published a market oversight report on investment by UK pension schemes in private markets, particularly UK private markets. Key findings include: Trustees are open to UK private market investments if the investments offered meet the scheme’s investment needs and characteristics. DC schemes and master trusts with the necessary scale and capacity have made significant progress, but appetite is limited among DB schemes to invest in private markets beyond private credit...

October 7, 2026

Articles, System Characterization2026, Investment, Pension Management, Taxation, UK

02OctOctober 2, 2026

Redistribution with Unequal Life Expectancy

By Sebastian Köhne I study life-expectancy inequality in a Mirrleesian life-cycle framework with pension-linked fiscal externalities and private retirement saving. Heterogeneous longevity affects optimal redistribution by changing both the expected fiscal cost of pension benefits and the mapping from disposable income into social marginal welfare. I derive an ABCD optimal tax formula that incorporates these efficiency and equity effects. Calibrated to the U.S. economy, the model implies that accounting for heterogeneous longevity lowers optimal marginal tax rates, particularly at the...

October 2, 2026

Articles, Savings2026, Equality, Longevity, savings, Taxation

11SepSeptember 11, 2026

Redistribution through Taxes or Pensions? Optimal Income Tax and Pension Progressivity

By Burkhard Heer & Mark M. Trede We develop a medium-scale overlapping-generations model with endogenous labor supply and skill premium to study optimal income redistribution using progressive labor income taxes and pensions. The model is calibrated to the four countries USA, Great Britain, Italy and Germany which differ substantially in their tax and pension systems, demographics, and skill shares among workers. Optimal pension benefits are proportional to lifetime contributions in all four countries, while the optimal degree of income tax...

September 11, 2026

Articles, Pension design2026, Equality, Social Security, Taxation

04SepSeptember 4, 2026

Redistribution through Taxes or Pensions? Optimal Income Tax and Pension Progressivity

By Burkhard Heer & Mark M. Trede We develop a medium-scale overlapping-generations model with endogenous labor supply and skill premium to study optimal income redistribution using progressive labor income taxes and pensions. The model is calibrated to the four countries USA, Great Britain, Italy and Germany which differ substantially in their tax and pension systems, demographics, and skill shares among workers. Optimal pension benefits are proportional to lifetime contributions in all four countries, while the optimal degree of income tax...

September 4, 2026

Articles, Pension design2026, Italy and Germany, Social Security, Taxation, UK, US

28AugAugust 28, 2026

UK. Income tax blow for retirees who delayed state pension

People putting off their state pension to earn a little extra are likely to see it taxed under new rules, according to analysis. The state pension is set to grow larger than your personal allowance from next year, meaning some of it will be subject to income tax. The government has promised an exemption for people who rely on the state pension as their source of income, but it appears this will not include those who delayed taking it in order...

August 28, 2026

NewsTaxation, UK

07AugAugust 7, 2026

The macroeconomic and fiscal impact of population ageing

By Katalin Bodnár & Carolin Nerlich The euro area, like many other advanced economies, has entered an era of drastic demographic change. Without appropriate policy responses, population ageing in the euro area is posing formidable challenges for potential growth, monetary policy and public finances. This paper examines – from a central bank’s perspective – the macroeconomic and fiscal effects of population ageing in the euro area and looks at the main challenges ahead in the next decades. Total population in the...

August 7, 2026

Aging, Books, Books, Reports2026, Aging, EU, Europe, Taxation

07AugAugust 7, 2026

Bequest-Motivated Decumulation of UK Pensions for Non-Domiciled Individuals: A Monte-Carlo and HJB Approach

By Sebastien Hitier We study the optimal decumulation of a UK pension pot for an expatriate holder who is tax-resident in a jurisdiction that does not tax investment income or gifts. Because the pension wrapper offers no ongoing tax shelter to heirs, the holder's sole objective is to minimise the expected present value of lifetime taxes-personal income tax on drawdowns plus inheritance tax at death. We formulate the problem as a stochastic optimal control with Gompertz-Makeham mortality, progressive UK taxation,...

August 7, 2026

Articles, Pension design2026, Migration, Pension Payout, Taxation, UK, Withdrawals

04AugAugust 4, 2026

UK. State pensioners on track for up to £539 extra cash in next triple lock boost

New state pensioners are in line for a huge boost to their annual benefit income - but will avoid a tax bill from HMRC for at least one more year. New state pensioners are in line for a boost to their state pension worth nearly £539 year. That's because the Triple Lock forecasts show that right now, the benefit is set to increase by 4.3% next year. The new state pension was introduced in 2016 and applies to all men born after April 5, 1951 and women...

August 4, 2026

NewsState pension, Taxation, UK

06JulJuly 6, 2026

Aging Alone? What Living Single Means for Retirement Taxes

Traditional retirement planning has long assumed a household of at least two people and often the involvement of adult children in managing financial decisions later in life. But more and more, that assumption no longer applies to a growing share of retirees. Surveys and data show that many people living in the U.S. are charting a different course, with roughly 1 in 5 over the age of 50 living alone. (That number rises to 27% for those age 60 and...

July 6, 2026

NewsAging, Personal Finance, Taxation

25MayMay 25, 2026

UK Pensioners Suffer Heavy Tax Losses as 462,000 Rush to Withdraw Savings

Hundreds of thousands of British retirees are inadvertently surrendering significant portions of their life savings to HM Revenue and Customs, as an unprecedented rush to withdraw pension cash exposes catastrophic flaws in national retirement guidance. Startling data published annually by the Financial Conduct Authority reveals a 29 percent surge in the number of individuals cashing out their entire pension pots. Driven by unrelenting cost-of-living pressures and highly restrictive legacy financial products, retirees are triggering massive, entirely avoidable tax liabilities that...

May 25, 2026

NewsTaxation, UK, Withdrawals

October 2026

The Pensions Brief: October 2026

Redistribution with Unequal Life Expectancy

September 2026

August 2026

UK. Income tax blow for retirees who delayed state pension

The macroeconomic and fiscal impact of population ageing

Bequest-Motivated Decumulation of UK Pensions for Non-Domiciled Individuals: A Monte-Carlo and HJB Approach

UK. State pensioners on track for up to £539 extra cash in next triple lock boost

July 2026

Aging Alone? What Living Single Means for Retirement Taxes

May 2026

UK Pensioners Suffer Heavy Tax Losses as 462,000 Rush to Withdraw Savings