Intra and inter-cohort differences in private and personal pension contributions for men and women in the UK from 1999-2000 to 2009-2010

Abstract

Using data from the Family Resources Survey from 1999-2000, 2004-2005 and 2009-2010, this research investigates intra- and inter-cohort differences in men and women relating to their propensity to make private and personal pension contributions. It investigates the extent of differentials associated with key demographic and socio-economic characteristics including gender, marital status, education, housing tenure, economic activity, employment sector, gross weekly income and care roles and responsibilities. The findings can help to inform future legislative changes made to address the particular circumstances of those most likely to be at risk of financial under-provision at old age.

Bivariate analyses using age, period and cohort perspectives indicate a downward trend in men’s private pension participation, within and across cohorts over time. Women, in contrast, have maintained similar levels of contribution rates during the same period, although these levels are consistently lower than for men. Further bivariate and logistic regression analyses also show notable variations between men and women for each of the demographic and socio-economic characteristics listed above. For example, single individuals across all cohorts are less likely to make private pension provision, even as they approach old age. Results also show that men with young children are as likely as men without children to make private pension contributions whereas having young children is negatively associated with women’s pension participation, although this difference between men and women reduces for younger cohorts.
There are distinct patterns of contribution behaviour depending on the angle of analysis adopted, for example, proportions of people making private pension contributions do not fall so dramatically within cohorts compared with age groups over time. This emphasises the importance of interpreting the results according to both actual age and cohort, as it suggests that behaviour not only varies with an individual’s age but also reflects each cohort’s unique lifecourse exposure to different social trends and pension regimes.

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Identifiers

ORCID for Jane Falkingham: orcid.org/0000-0002-7135-5875

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