The GHS has included questions on occupational pensions in selected years since 1981 and on personal pensions since 1987. This chapter first presents information on occupational and personal pensions for employees (Tables 6.1 – 6.11), and then on the pension arrangements of the self-employed (Tables 6.12 – 6.14).

Currently all working people, both employees and the self-employed, are required to pay National Insurance contributions towards the basic state pension. Employees are also required to contribute either through National Insurance deductions to the second-tier state pension, SERPS (State Earnings Related Pension Scheme), or to make alternative provision through an occupational scheme or a personal pension arrangement. Self-employed people cannot contribute to SERPS so the only second pension choice for them is a personal pension.

A number of changes in pension provision have recently been introduced. In April 2001, coinciding with the start of fieldwork for the 2001 GHS, a new type of personal pension called the stakeholder pension was made available. The requirement on certain employers to offer access to a pension scheme, including a stakeholder pension, started a little later in October 2001. Stakeholder pensions offer greater flexibility than traditional personal pensions and are, for example, available to people who are not currently in employment. In April 2002, shortly after the completion of fieldwork for the 2001 GHS, the State Second Pension was introduced. The new pension reformed SERPS to provide a more generous additional pension for low and moderate earners, and for certain carers and people with a long-standing illness or disability.