Retirement: Personal Savings
The question
To ask the Secretary of State for Work and Pensions, with reference to his Department’s press release entitled Britain is undersaving for retirement warns Pensions Commission, published on 19 May 2026, what assessment he has made of the principal causes of retirement undersaving among (a) low and (b) middle earners.
Answered by Torsten Bell
The Government recognises the challenges facing the country when it comes to pensions. On average, someone retiring in 2050 is set to have 8% (£800 per year) lower private pension income compared to a retiree in 2025 (in today’s earning terms), while nearly 15 million working-age people are not on track to have an adequate retirement income as measured by Target Replacement Rates.
The Government has already taken action to reform workplace pensions. The Pension Schemes Act received Royal Assent in April and will play a huge role in strengthening the private pensions market, providing better outcomes for pension savers and supporting UK growth.
We have also revived the Pensions Commission to address these very matters of adequacy, fairness and sustainability. The Commission published their interim report on 19 May 2026, setting out the key challenges facing the system and where it will focus its work next. This includes a particular focus on those most at risk of undersaving or poverty in retirement, including individuals on lower incomes, the self-employed, and those unlikely to own their own home in retirement. It will publish a final report and recommendations in early 2027.
Following publication of the Final Report, the Government will set out its response to the recommendations made and the strategy to deliver a strong, fair, and sustainable pensions system.
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