pensions, means testing

The Effects of Means-Testing Pensions on Savings and Retirement

NIESR Discussion Paper Number 265. Report produced by the National Institute of Social and Economic Research for the Department for Work and Pensions.

Summary
This study uses a stylised simulation model to consider potential behavioural responses to the reduction in pension taper rates associated with replacing the Minimum Income Guarantee (MIG) with the Pension Credit (PC). A range of long-run responses to the policy change are identified, summarised by four behavioural "types":