Taxes on wealth and spending

At this event, researchers shared findings from two new reports, examining when individuals should save for retirement – given factors like earnings growth and children – and how employees save in practice.

The last decade has seen considerable change to the pensions environment. This event included a keynote talk from the Minister for Pensions and Financial Inclusion, a presentation on a programme of IFS research in this area over the last two years, and an expert panel discussion of the implications of the research.

The proportion of the self-employed saving in a private pension has declined dramatically over the past two decades, leading to continued concerns about their financial preparations for retirement. At this event we presented the findings of new IFS research that has examined this trend.

This presentation was given at the launch of two reports into recent pension reforms, on retirement savings expectations and on automatic enrolment.

I see nothing objectionable in fixing a limit to what anyone may acquire by mere favour of others, without any exercise of his faculties, and in requiring that if he desires any further accession of fortune, he shall work for it.” That, from John Stuart Mill, alongside his conviction that great economic and social advantages would result from a reduction in the number of “enormous fortunes which no one needs for any personal purpose but ostentation or improper power”, has for more than a century been the central liberal case for a substantial and effective inheritance tax.

In this Facebook Live event, IFS Research Economist David Sturrock looked at the economics of pensions and the ageing population, answering questions such as how will changing demographics affect public pensions, and what can the government do about it?

Why has wealth accumulation stalled for younger generations? In the case of the 1980s generation, those in their early 30s actually have about 20 per cent less wealth on average than those born in the 1970s had at that age.

Over 50 countries and localities, including the UK, have recently introduced taxes on soft drinks. In new IFS research funded by the National Institute of Health Research under the Department for Health’s Obesity Policy Research Unit, we survey the evidence on the effects of soft drink taxes on prices and purchases in 27 studies covering 11 jurisdictions (Berkeley, Boulder, Catalonia, Chile, France, Maine, Mexico, Ohio, Philadelphia, Portugal and Washington).

This weekend the state pension age, for both men and women, rose to 65 years and five months. It will continue to rise every couple of months until it reaches 66 in October next year. Further increases to 67 in 2028 and to 68 a decade or so after that are planned. These increases are the obvious, if belated, response to a sharp growth in life span.

The British economy is going to face a number of big issues over the next fifty years. Whether it is reforming the tax and benefit system, managing an ageing population, or preparing for the workplace of the future, there are plenty of challenges and opportunities ahead.