Government revives landmark Pensions Commission to confront retirement crisis that risks tomorrow’s pensioners being poorer than today’s

Millions of people could benefit from a more secure retirement as the Government today [Monday 21 July 2025] revives the landmark Pensions Commission to examine why tomorrow’s pensioners are on track to be poorer than today’s and make recommendations for change.

• Without action tomorrow’s retirees are on track to be poorer than today’s.

• Almost half of working-age adults are still saving nothing with low earners, some ethnic minorities and the self-employed least likely to be pension saving.

• Revived Pension Commission will consider the long-term future of our pensions system to make today’s workers better off in retirement.

  
  

The Commission of 2006 was a huge success, building a consensus for the roll-out of Automatic Enrolment into pension saving that means 88% of eligible employees are now saving, up from 55% in 2012.

However, new analysis shows that there is more to do with the incomes of retirees set to fall over the next few decades if nothing changes:

• Retirees in 2050 are on course for £800 or 8% less private pension income than those retiring today.

• 4-in-10 or nearly 15 million people are under saving for retirement.

This partly reflects too many working age adults (45%) saving nothing at all into a pension, with lower earners, the self-employed and some ethnic minorities particularly at risk:

• Over 3 million self-employed are not saving into a pension.

• Only 1-in-4 low earners in the private sector are saving into a pension.

• Just 1-in-4 of those from a Pakistani or Bangladeshi background are saving.

New analysis today also reveals a stark a 48% gender pensions gap in private pension wealth between women and men. A typical woman currently approaching retirement can expect a private pension income worth over £5,000 less than that of a typical man (just over £100 per week for a woman compared to just over £200 a week for a man).

While the introduction of Automatic Enrolment increased the numbers saving, saving levels have often remained low. Around 1-in-2 workers in the private sector only save around the minimum contribution level (8% or less of earnings).

So the Government is today announcing it will revive the landmark Pension Commission two decades on, to address these stark findings.

Work and Pensions Secretary Liz Kendall said:

“People deserve to know that they will have a decent income in retirement – with all the security, dignity and freedom that brings. But the truth is, that is not the reality facing many people, especially if you’re low paid, or self-employed.”

“The Pensions Commission laid the groundwork, and now, two decades later, we are reviving it to tackle the barriers that stop too many saving in the first place.”