At least 15 million people in Britain are not saving enough for retirement, according to a government-backed report from the Pensions Commission. The independent group warns that without action, this figure could rise to 19 million, leaving many facing a 'severe cliff-edge' when they stop working.
The commission, revived by Prime Minister Keir Starmer last year, found that 45% of working-age adults are not saving into a pension at all, despite nearly half being employed. Low and middle earners are most at risk, with many relying solely on minimum automatic enrolment contributions of 8% of earnings.
Self-employed workers are particularly vulnerable, with only 4% saving into a pension. The report also highlights a gender gap, with women approaching retirement having median private pension savings of £81,000 compared to £156,000 for men.
Commission chair Jeannie Drake called for a 'renewed national settlement on pensions' to secure adequate income in later life. Pensions Minister Torsten Bell acknowledged that while Britain has regained the saving habit, 'the job is only half done'.
The commission will publish final recommendations next year, aiming to address the chronic under-saving that threatens both individual welfare and the wider economy.
