{"id":110973,"date":"2025-07-21T11:30:00","date_gmt":"2025-07-21T10:30:00","guid":{"rendered":"https:\/\/en.econostrum.info\/uk\/?p=110973"},"modified":"2025-07-21T11:04:53","modified_gmt":"2025-07-21T10:04:53","slug":"labour-revives-the-pensions-commission","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/uk\/labour-revives-the-pensions-commission\/","title":{"rendered":"Labour Revives the Pensions Commission Amid Alarming Savings Shortfall"},"content":{"rendered":"\n

Labour is resurrecting the Pensions Commission<\/strong> to address the growing concerns that a significant portion of the workforce is not saving enough for retirement. With a rising number of workers at risk of financial hardship in their later years, the commission aims to find solutions to ensure more secure retirements for future generations.<\/p>\n\n\n\n

According to experts, workers approaching retirement in 2050 may receive up to \u00a3800 less per year <\/strong>than current pensioners. This worrying trend has prompted the Department for Work and Pensions (DWP<\/a>) to take action. The government believes that the commission\u2019s review will help alleviate concerns and create a fairer retirement system.<\/p>\n\n\n\n

Commission\u2019s Role in Improving Pension Savings<\/h2>\n\n\n\n

The revival of the Pensions Commission follows concerns that too many workers are not saving enough for retirement<\/strong>. <\/p>\n\n\n\n

According to data from the DWP, 45% of working-age adults are not contributing to their pensions<\/a>, a situation that could worsen over the coming decades. One of the commission’s key tasks will be tackling the barriers <\/strong>preventing people from saving, as well as exploring ways to increase contributions across the population.<\/p>\n\n\n\n

In 2006, the original Pensions Commission helped drive forward the automatic enrolment system, which has since seen a rise in pension savings from 55%<\/strong> in 2012 to 88%<\/strong> of eligible employees. <\/p>\n\n\n\n

Now, with projections indicating that 15 million people are under-saving for their retirement, the commission’s work has become even more urgent. Among those particularly affected are the self-employed, lower-paid workers, and ethnic minorities. <\/p>\n\n\n\n

According to the DWP, around three million<\/strong> self-employed individuals are saving nothing for retirement, highlighting a serious gap that needs addressing.<\/p>\n\n\n\n

Gender and Socio-Economic Disparities in Retirement Savings<\/h2>\n\n\n\n

Another crucial issue the Pensions Commission will address is the significant gender pensions gap. Women approaching retirement are expected to receive only about half<\/strong> of the income men are likely to enjoy. <\/p>\n\n\n\n

This disparity stems from various factors, including women\u2019s more frequent career breaks due to caring responsibilities, which impact their ability to accumulate pension savings.<\/p>\n\n\n\n

Additionally, low-paid workers in the private sector and individuals from certain ethnic backgrounds<\/strong>, such as those of Pakistani and Bangladeshi descent, are also particularly vulnerable. <\/p>\n\n\n\n

According to the report, only a quarter <\/strong>of people in these groups are saving for their retirement. The commission’s task will be to ensure that these groups are not left behind in the pursuit of a more inclusive and equitable pension system.<\/p>\n\n\n\n

By tackling these disparities, the Pensions Commission has the potential to create a more sustainable and fair system that can provide future retirees with better financial security.<\/p>\n","protected":false},"excerpt":{"rendered":"

Labour has revived the Pensions Commission in response to growing concerns over workers\u2019 insufficient retirement savings. With nearly half of working-age adults contributing nothing to their pensions, the commission\u2019s work will focus on addressing this gap. The initiative aims to secure a more sustainable and equitable retirement system.<\/p>\n","protected":false},"author":10,"featured_media":110975,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[44],"tags":[],"class_list":["post-110973","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/110973","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/comments?post=110973"}],"version-history":[{"count":2,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/110973\/revisions"}],"predecessor-version":[{"id":110976,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/posts\/110973\/revisions\/110976"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media\/110975"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/media?parent=110973"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/categories?post=110973"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/uk\/wp-json\/wp\/v2\/tags?post=110973"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}