Review of State Pension Age and Pensions Commission Rebooted

The UK Government has announced it will review the state pension age, amid concerns that many workers are not saving enough for retirement. The current state pension age of 66 years old is expected to increase further, but the review aims to consider whether this is still an appropriate age, taking into account factors such as life expectancy. The Pensions Commission, last convened in 2006, will provide recommendations to boost retirement income, and experts warn that people looking to retire in 2050 could receive £800 less per year than current pensioners.

Key Takeaways:

• The UK Government has confirmed it will review the state pension age, considering factors such as life expectancy.
• The Pensions Commission, last convened in 2006, will provide recommendations to boost retirement income by 2027.
• Experts warn that people looking to retire in 2050 could receive £800 less per year than current pensioners.
• 45% of working-age adults are not saving anything for their retirement, with 15 million people identified as undersaving.
• The self-employed, low-paid, and some ethnic minorities are particularly affected, with around three million self-employed people saving nothing for their retirement.
• The previous Pensions Commission recommended automatic enrollment in workplace pensions, which has seen the number of eligible employees saving rise from 55% in 2012 to 88%.
• Caroline Abrahams, charity director of Age UK, states that the current system of saving has significant gaps, leaving many pensioners struggling to make ends meet.
• The State Pension provides the bulk of retirement income for most pensioners, with 1.1 million people receiving all their income from the State.

Statistics:

• 45% of working-age adults are not saving anything for their retirement.
• 15 million people are undersaving for retirement.
• 1.1 million pensioners receiving all their income from the State.
• £800 less per year may be received by people looking to retire in 2050 compared to current pensioners.
• The number of eligible employees saving for retirement has increased from 55% in 2012 to 88%.

Sources:

• "Government to review pension age as Labour revives Pensions Commission" by Sonia Sharma, The State.
• Source: Department for Work and Pensions (DWP) - "Pensions statistics".
• Source: "Britain's pensioners face poverty as wage reductions erode their standard of living" - Policy Exchange.
• Source: "The State Pension: a review of the future" - The Pensions Commission.