Workers today are at an increased risk of poverty in old age compared to previous generations. Projections indicate that individuals retiring in 2050 will receive significantly less from pensions, with age UK highlighting an expected annual shortfall of £800. The Department for Work and Pensions plans to revive the Pensions Commission to address these issues. Currently, 45% of working-age adults are not saving for retirement. Automatic enrollment in workplace pensions has improved participation rates significantly, addressing previous barriers to saving for retirement, particularly among at-risk groups.
Today's workers face a higher risk of poverty in old age than their parents, with projections showing significant reductions in pension payouts for those retiring in 2050.
The UK government plans to revive the Pensions Commission to address barriers preventing many from saving for retirement, as current trends show 45% of working-age adults are not contributing.
The previous commission's recommendation for automatic enrollment in workplace pensions led to a rise in saving participation, from 55% in 2012 to 88% among eligible employees.
DWP analysis reveals that around 15 million people are undersaving for retirement, impacting particularly the self-employed, lower-paid individuals, and certain ethnic minorities.
Collection
[
|
...
]