The Pensions Commission has issued a stark warning that an estimated 15 million people across the UK are currently under-saving for their retirement. In its interim report, the body urgently called for a fresh “national settlement” to address the growing crisis in pension provision.
The commission highlighted that significant groups face a “severe cliff-edge” when they stop working, with women, low and middle-income earners, and the self-employed identified as particularly at risk of financial insecurity in later life. Without decisive action, the number of individuals inadequately preparing for retirement could escalate to 19 million, the commission warns.
The report noted that the share of the population over 65 is projected to reach 28% by 2075, up from 19% today, and the number of people aged 75 or over is expected to double between 2025 and 2075. Spending on pensioner benefits is projected to grow from around 6% of GDP in 2024-25 to around 9% by the early 2070s.
Set up by the Government in July 2025, the commission aims to address savings challenges that have been building for decades. Many people do not have salary-based pensions to rely on, and some groups are left out of automatic enrolment into workplace pensions, such as those earning below £10,000 and the self-employed. The commission said just 4% of wholly self-employed workers are saving for retirement.
The report also highlighted gender disparities, with median uncrystallised private pension wealth in people’s late 50s at £156,000 for men and £81,000 for women. Pension participation gaps are a particular worry for carers, people with disabilities and some ethnic minorities.
A final report with recommendations will follow in early 2027. Pensions commissioner Baroness Jeannie Drake said achieving a renewed national settlement on pensions “will require clarity of purpose, but it also offers a moment of opportunity; to renew a social contract that commands confidence across the country.”
