Government revives Pensions Commission - 22nd July 2025

On 21 July the Government announced the revival of the Pensions Commission with the aim of examining why tomorrow’s pensioners are on track to be poorer than today’s.  The Commission will then make recommendations on how to change this.  

The Government state that retirees in 2050 are on course for 8% less private pension income than those retiring today and that 40% of people are under saving for retirement.  

Many people are not saving anything at all for retirement including over 3 million self-employed individuals.  

Whilst the introduction of automatic enrolment increased the number of savers, saving levels have remained low – around 50% of workers in the private sector are only paying the minimum contribution levels.  

New analysis also shows there is a still a significant gender gap of almost 50% in private pension wealth for women and men.  

The Pensions Commission will therefore consider the long-term future of pensions including: 

• outcomes and risks for future cohorts of pensioners on current trajectories through to 2050 and beyond

• how to improve retirement outcomes, especially for those on the lowest incomes and at the greatest risk of poverty or undersaving

• the role of private pension provision and wider savings, in delivering financial security in retirement and supporting those approaching retirement

• the long-term challenges of supporting an ageing population 

Work and Pensions Secretary Liz Kendall said: 

“People deserve to know that they will have a decent income in retirement – with all the security, dignity and freedom that brings. But the truth is, that is not the reality facing many people, especially if you’re low paid, or self-employed. 

The Pensions Commission laid the groundwork, and now, two decades later, we are reviving it to tackle the barriers that stop too many saving in the first place.” 

The Commission will submit its final report to the government in 2027.  

Source: Techlink Professional