UK Pensions Commission Warns 15 Million Under-Save, Urges New National Settlement
Updated
Updated · The Independent · May 19
UK Pensions Commission Warns 15 Million Under-Save, Urges New National Settlement
15 articles · Updated · The Independent · May 19
15 million UK residents are under-saving for retirement, the Pensions Commission said, warning that figure could climb to 19 million without action and leave more people dependent on state support.
Its interim report says longer retirements, slower growth and falling home ownership are straining the system, with over-65s projected to reach 28% of the population by 2075 from 19% today.
Women, low- and middle-income earners and the self-employed face the sharpest risks: only 4% of wholly self-employed workers are saving, while women in their late 50s held median private pension wealth of £81,000 versus £156,000 for men.
Automatic enrolment has lifted workplace pension saving to nine in 10 eligible employees, but the commission said the legal minimum contribution has become a norm and still leaves many short of an adequate retirement income.
A final report is due in early 2027, with ministers, insurers, consumer groups and unions broadly backing reforms that could widen coverage, raise saving levels and support longer working lives.
As millions face a retirement 'cliff edge,' can merging small pension pots fix a problem rooted in low wages and affordability?
Will forcing pensions to invest in the UK boost savings, or just use retirement funds to finance national projects at savers' risk?
The UK’s Pension Time Bomb: 15 Million Undersaving and Urgent Reform Needed
Overview
The UK is facing a serious retirement crisis, as highlighted by the Pensions Commission's interim report published in May 2026. The report warns that chronic under-saving for retirement is putting millions at risk, with 15 million people already undersaving and this number possibly rising to 19 million. This means many future retirees could be poorer than those retiring today and may have to rely on state support. Low and middle earners are especially vulnerable, often saving only at the minimum required levels. Without urgent action, the problem will grow, threatening the economy and the well-being of millions.