Around 15 million people in the UK are currently under-saving for retirement, according to an interim report published by the Pensions Commission, raising concerns about the long-term financial outlook for future pensioners.
The commission warned that without further reforms, the number of people not saving enough for later life could rise to 19 million. The report highlights growing pressure on the pensions system as people live longer, housing costs rise and many workers remain outside adequate retirement saving arrangements.
Women, low and middle earners, carers and self-employed workers were identified among the groups most at risk of facing financial difficulties in retirement.
Warning
The Pensions Commission said demographic and economic changes are creating increasing strain on retirement systems across the UK.
In its report, the commission stated: “The forces reshaping our society – longer retirements, slower growth, and falling home ownership – demand a renewed national settlement on pensions.”
According to projections included in the report, the proportion of the UK population aged over 65 is expected to rise from 19% today to 28% by 2075.
The number of people aged 75 and over is also forecast to double between 2025 and 2075, increasing by around six million people.
The report noted that state pension age increases and slower improvements in life expectancy have helped manage pension pressures in recent decades. However, it warned that the old-age dependency ratio is expected to rise sharply over the coming years.
By the 2070s, the UK could have four pensioners for every 10 working-age adults.
Savings
The commission said many workers are still not building sufficient retirement savings despite the success of automatic enrolment in workplace pensions.
Automatic enrolment has increased pension participation across the UK, but some groups remain excluded from the system.
Workers earning below the £10,000 annual earnings threshold in a single job are not automatically enrolled into workplace pensions. Self-employed workers are also outside the current enrolment framework.
The report found that only 4% of wholly self-employed workers are actively saving for retirement.
| Group | Pension Concern |
|---|---|
| Self-employed workers | Low pension participation |
| Women | Lower average pension wealth |
| Low earners | Limited retirement savings |
| Carers | Gaps in pension contributions |
| Some ethnic minorities | Lower participation rates |
The commission said the current pension system relies heavily on automatic enrolment and employee inertia, meaning many workers without access to workplace pensions are left behind.
Gap
The report also highlighted continuing inequalities in retirement savings between men and women.
According to the commission, median uncrystallised private pension wealth for people in their late 50s stood at:
| Group | Median Pension Wealth |
|---|---|
| Men | £156,000 |
| Women | £81,000 |
This means women in that age group held around 48% less private pension wealth than men between 2020 and 2022.
The commission said carers, people with disabilities and some minority ethnic groups also continue to face structural barriers that affect long-term pension participation and savings levels.
Work
The report argued that longer working lives will likely become an important part of maintaining adequate retirement incomes in the future.
In particular, the commission said reducing economic inactivity among people in their 50s could help improve retirement outcomes and support the wider economy.
However, the report acknowledged that working longer may not be realistic for everyone due to health issues, caring responsibilities or physically demanding jobs.
The commission stated: “But longer working lives can only be part of the answer and are easier for some people than others.”
Concerns
Another issue identified in the report is the growing trend of people accessing private pension savings at the earliest possible age.
According to current trends, around three in 10 private pension pots are being accessed as soon as individuals become eligible.
Experts have warned this may leave some retirees with insufficient income later in retirement if savings are depleted too quickly.
The commission said reforms may be needed to help people make more sustainable decisions when drawing retirement income.
Response
The Pensions Commission was established by the Government in July 2025 to examine long-term pension challenges and recommend reforms.
A final report with policy recommendations is expected in early 2027.
Pensions commissioner Baroness Jeannie Drake said the review represents an opportunity to rebuild confidence in the pensions system.
She said the commission’s recommendations would focus on securing adequate retirement income and creating “a pension system that is fit for decades to come”.
Pensions minister Torsten Bell said the UK had “got back into the pension saving habit” but warned that many future retirees are still on track to be financially worse off than today’s pensioners.
Industry groups, charities and pension organisations have broadly welcomed the report and its focus on long-term reform.
Several organisations, including Age UK, Which? and the Association of British Insurers, said stronger pension policies will be needed to prevent more people from facing financial insecurity later in life.
The commission is expected to continue consulting with businesses, trade unions, pension providers and consumer groups before publishing its final recommendations in 2027.
FAQs
How many people are under-saving for retirement?
Around 15 million people, according to the report.
Who is most at risk?
Women, carers and self-employed workers.
Why may people need to work longer?
To improve retirement income levels.
What is automatic enrolment?
A system placing workers into workplace pensions.
