Millions not saving enough for retirement as pension shake-up review launched
Liz Kendall will today warn millions of people are not saving enough for retirement as she launches a review to shake-up the pensions system.
The Work and Pensions Secretary will resurrect the Pensions Commission, which was set up under ex-PM Tony Blair's Labour government.
The Department for Work and Pensions said the new Commission, which will report back in 2027, will be tasked with combating the retirement crisis.
An analysis shows that people looking to retire in 2050 are on course to receive £800 per year less than current pensioners. Around 15million people - four in 10 - are undersaving for retirement while an estimated three million self-employed people are not saving into a pension.
And the analysis shows a stark gender pensions gap, with a woman currently approaching retirement expected to receive a private pension income worth £5,000 less than a man.
The previous Pensions Commission recommended automatically enrolling people in workplace pensions. It has seen the number of eligible employees saving rise from 55% in 2012 to 88%.
Writing in The Mirror today, Ms Kendall says: "Unless we act, there is a real risk that tomorrow's pensioners are set to be poorer than today's. Put simply, too many people are not saving enough for retirement. And often it is through no fault of their own."
Ms Kendall is also expected to launch a review of the state pension age today (MON), which the DWP said she is legally obliged to do. It is not expected to report back until 2029 meaning there are unlikely to be any changes in the current Parliament.
Chancellor Rachel Reeves added: "We're making pensions work for Britain. The Pension Schemes Bill and the creation of pension megafunds mean an average earner could get a £29,000 boost to their pension pots.
"Now we are going further to ensure that people can look forward to a comfortable retirement.'
Paul Nowak, general secretary of the Trades Union Congress (TUC), said: "Far too many people won't have enough pension for a decent retirement, and too many - especially women, BME (black and minority ethnic) and disabled workers and the self-employed - are shut out of the workplace pension system altogether.
"That's why this Pensions Commission - which will bring together unions, employers and independent experts - is a vital step forward."
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