Pensions Commission Warns 15 Million Britons Under-Saving for Retirement

The Pensions Commission released an interim report, 'Pensions 2050: Evidence and Future Priorities,' warning that approximately 15 million people in the United Kingdom are under-saving for retirement. Without intervention, this figure could rise to 19 million, potentially leaving millions reliant on state support. The report identifies women, the self-employed, and low-to-middle earners as the groups most at risk of a financial cliff-edge.

Findings highlight a stark gender disparity, with women possessing only half the private pension wealth of men—median savings of £81,000 compared to £156,000. This gap is driven by a motherhood penalty, where contributions stagnate after the birth of a first child. Systemic failures also affect the self-employed, only 4% of whom save for retirement due to a lack of automatic enrolment. Additionally, 30% of private pension pots are being accessed at the earliest opportunity for immediate spending.

Established by the government in July 2025, the commission is calling for a renewed national settlement to address demographic shifts and falling home ownership. While the government has ruled out changes to automatic enrolment contributions during the current Parliament, the commission suggests that reducing labor market inactivity for people in their 50s and increasing employer contributions may be necessary. A final report with formal recommendations is expected in early 2027.