At least 15 million people in Britain are not saving adequately for retirement, a government-backed report has warned, raising the prospect of a severe cliff-edge for large groups. The Pensions Commission, revived by Keir Starmer last year, said that without action the number could rise to 19 million, leaving tomorrow's retirees worse off than today's.
The commission's interim report found that 45% of working-age adults are not saving into a pension at all, despite nearly half being in work. Among the wholly self-employed, only 4% are saving for retirement, with even lower levels among younger self-employed people. Low and middle earners are most at risk, with around half saving only the minimum under auto-enrolment.
A significant gender gap persists: women approaching retirement have median private pension wealth of £81,000 compared with £156,000 for men. The commission said a renewed national settlement on pensions is required to ensure adequate income in later life. Jeannie Drake, chair of the commission, called for a system fit for decades to come.
Pensions Minister Torsten Bell said: 'Britain has got back into the pension saving habit, but the job is only half done with tomorrow's pensioners still on track to be poorer than today's.' The commission, which also highlighted that 30% of private pension pots are accessed at the earliest opportunity, will publish final recommendations next year.
