Mon, 21 Jul 2025

Mon, 21 Jul 2025 Future pensioners to be worse off, government warns

Future pensioners are set to be worse off than today's with four-in-10 not saving enough for retirement, says the DWP.

* People retiring in 2050 will be £800 or 8% worse off per year than those retiring today, unless action is taken.
* Almost half of working-age adults do not contribute to a private pension.
* Women and low-earners are disproportionately affected, with only one-in-four people of Pakistani or Bangladeshi background saving in a private pension.
* The Turner Pension Commission will be revived to address the issue, building on its previous success in increasing auto-enrolment rates from 55% to 88%.
* Analysis shows: + A 48% gender gap in private pension wealth among people currently retiring. + Men receive £200 per week from private pension income, while women receive just over £100.
* The commission will not address state pension issues, including the affordability of the triple lock policy.
* Experts and charities have called for bold recommendations to boost retirement savings, including significant increases to auto-enrolment contributions.
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