- Home
- Publications
- Funding Pensions In Scotland: Would Independence Matter?
Funding Pensions in Scotland: Would Independence Matter?
![](https://www.niesr.ac.uk/wp-content/themes/niesr/assets/img/calendar-alt.png)
![](https://www.niesr.ac.uk/wp-content/themes/niesr/assets/img/chain.png)
![](https://www.niesr.ac.uk/wp-content/uploads/2021/03/3-900x900.png)
External Authors
![](https://www.niesr.ac.uk/wp-content/themes/niesr/assets/img/user.3.png)
David Bell
![](https://www.niesr.ac.uk/wp-content/themes/niesr/assets/img/user.3.png)
David Comerford
![](https://www.niesr.ac.uk/wp-content/themes/niesr/assets/img/user.3.png)
David Eiser
Related Themes
Productivity, Trade, and Regional EconomiesJournal
, No. 227
External Resources
Economic issues will be key determinants of the outcome of the Scottish referendum on independence. Pensions are a key element of the economic case for or against independence. The costs of funding pensions in an independent Scotland would be influenced by mortality risks, the costs of borrowing and the segmentation of costs and risks (i.e. pricing to Scotland's experience rather than pooled across UK experience). We compare the overall costs of providing pensions in an independent Scotland against the resources that are available to cover these costs. Scotland has worse mortality experience than the UK as a whole, and Scottish government debt is likely to attract a liquidity premium relative to UK government debt. An independent Scottish government would have to create a bond market for public debt. The liquidity premium would make pensions cheaper to buy, but taxpayers or the consumers of public services would have to pay the cost.
Related Blog Posts
![](https://www.niesr.ac.uk/wp-content/uploads/2024/04/iStock-1404045125-1-640x640.jpg)
Productivity, Living Standards and Wellbeing: Comparing the UK and Australia
Eliza da Silva Gomes
Adrian Pabst
29 Apr 2024
4 min read
![](https://www.niesr.ac.uk/wp-content/uploads/2023/12/Productivity-Labour-Force-Hours-640x640.png)
Exploring the Data on UK Productivity Performance
Issam Samiri
Stephen Millard
11 Dec 2023
4 min read
![](https://www.niesr.ac.uk/wp-content/uploads/2023/12/iStock-1487963070-640x640.jpg)
UK Investment Past and Prospects: A Framework for Analysis
Catherine Mann
01 Dec 2023
6 min read
![](https://www.niesr.ac.uk/wp-content/uploads/2023/11/iStock-1496917161-640x640.jpg)
Related Projects
Related News
![](https://www.niesr.ac.uk/wp-content/uploads/2024/05/iStock-451572543-4-640x640.jpg)
How are the UK’s Devolved Nations Faring Ahead of the General Election?
16 May 2024
12 min read
![](https://www.niesr.ac.uk/wp-content/uploads/2023/11/Industrialisation-640x640.png)
![](https://www.niesr.ac.uk/wp-content/uploads/2021/09/Productivity-UK-640x640.png)
Related Publications
![](https://www.niesr.ac.uk/wp-content/uploads/2024/06/Hero-Images-General-Election-Briefings-640x640.png)
![Levelling Up](https://www.niesr.ac.uk/wp-content/uploads/2024/06/Hero-Images-Levelling-Up-640x640.png)
![](https://www.niesr.ac.uk/wp-content/uploads/2024/06/5-Hero-Image-Productivity-640x640.png)
![](https://www.niesr.ac.uk/wp-content/uploads/2024/05/UKEO-Hero-Image-640x640.png)
Related events
![Event Image](https://www.niesr.ac.uk/wp-content/uploads/2024/02/Public-Lecture-Imagery-3.png)
Investing for Growth: boosting productivity through higher public and private investment
![Event Image](https://www.niesr.ac.uk/wp-content/uploads/2024/01/Workshop-Imagery.png)
The Outlook for the Welsh Economy
![Event Image](https://www.niesr.ac.uk/wp-content/uploads/2023/07/Public-Lecture-Imagery-.png)
Prais Lecture with Chris Pissarides: The Future of Work and Wellbeing
![Event Image](https://www.niesr.ac.uk/wp-content/uploads/2023/10/British-Investment-PC-Workshop-1.png)
A View and Prospects for British Investment
![Event Image](https://www.niesr.ac.uk/wp-content/uploads/2023/10/PC-Workshop-Raise-Investment.png)
How Can We Raise Investment?
![Event Image](https://www.niesr.ac.uk/wp-content/uploads/2022/12/Productivity-Event-Imagery-1.png)
Productivity Commission Evidence Session: Examining the Role of International Investment
![Event Image](https://www.niesr.ac.uk/wp-content/uploads/2023/03/Public-Lecture-Imagery-.png)
High Dimensional Forecasting and its Pitfalls – M. Hashem Pesaran
![Event Image](https://www.niesr.ac.uk/wp-content/uploads/2023/04/Workshop-Imagery.png)
Finance and Growth Workshop
![](https://www.niesr.ac.uk/wp-content/themes/niesr/assets/img/arrow-right.png)
![](https://www.niesr.ac.uk/wp-content/themes/niesr/assets/img/arrow-right.png)