Summary
The UK government has warned that those retiring in 2050 may have less money than today's pensioners if retirement savings do not increase. To address this, the government is reviving the Pensions Commission to find ways to encourage more private pension savings. The focus will be on helping groups like low earners, the self-employed, and certain ethnic backgrounds who currently save less for retirement.
Key Facts
- The government predicts future retirees could be £800 or 8% worse off yearly than today's pensioners if savings do not increase.
- Almost half of working adults do not save in private pensions, with low earners and self-employed people less likely to save.
- Only one-in-four people of Pakistani or Bangladeshi backgrounds are saving in private pensions.
- A previous pension commission led to automatic enrolment, increasing pension savers from 55% in 2012 to 88% now.
- There is a 48% gender gap in pension wealth, with women typically receiving less than men.
- The Commission will report findings in 2027 and aims to encourage more private pension savings.
- The Commission will not address issues regarding the state pension.
- The cost of the state pension "triple lock" policy could become significantly higher by the end of this decade.
