Future pensioners to be worse off, government warns |
| People retiring in 2050 will be worse off than pensioners today, the government has warned, unless action is taken to boost retirement savings. The Department for Work and Pensions (DWP) is reviving the Pensions Commission, which first reported nearly 20 years ago, to look at how to tackle the issue. Almost half of working-age adults are not putting any money into a private pension at all, with low earners and the self-employed less likely to be pension saving, the DWP said. People drawing their pension 25 years from now are set to be £800 or 8% worse off per year than their counterparts today, the department said, with four in 10 people currently not saving enough for their retirement. Rather than launching a new commission from scratch, the government said it was reviving the "landmark" Turner Pension Commission which reported in 2006, under the last Labour government, and led to the roll-out of automatic enrolment into pension saving. As a result 88% of eligible employees are now saving, up from 55% in 2012, the DWP said. |
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