Recommendation 22

We questioned how 2023–24 pension disclosures appeared to show a reduction in public sector pension liabilities and raised that this was counter intuitive. We raised concern that this disclosure created presents a false picture of the underlying fiscal reality when the number of scheme members continues to risk and life expectancy trends increase long-term obligations.41 The Treasury acknowledged the Committee’s concern and suggested that the most meaningful long-term indicator of pension affordability is pension spending as a share of GDP. It commented that pensions were currently about 1.9% of GDP and expected to fall to about 1.4% over the next 50 years. The Treasury agreed with the general point about being transparent about different ways of measurement in order to support debate.42