United Kingdom Country Summary

Basics Low flat-rate Basic State Pension (20% national average earnings) Supplementary Earnings Related Second State Pension - contracting out allowed and normal Long history of Occupational Funded Schemes Insured and Self Administered Plans co- exist happily

Investment Strong Equity Culture (around 90% of Pension Assets in Global Equities) Pension Funds own around 30% of UK Equity market Prudent Man Approach Investment Management separate from Administration of Benefits

Structure Usually single employer schemes, although there are a number of industry-wide funds To date no open funds have existed, although they will be introduced in 2001 called Stakeholder Pensions All plans are voluntary to employees Insurers have had opportunity to sell third pillar “personal pensions” since 1988.

Issues Mis-selling of personal pensions Introduction of Stakeholder Pensions Corporate Governance Minimum Funding Requirement Global Diversification - multinational indices