Pensions - Articles - 15 million workers risk inadequate retirement incomes

The Working Group recommends action across six areas: a more stable pensions tax framework, better targeted education and digital support, wider use of sidecar savings, extension of automatic enrolment, support for CDC as a mainstream retirement model, and reform of the State Pension.

 

Saye Mkangama, Chair, ACA Adequacy Working Group said: “Automatic enrolment has been a major success in increasing pension participation, but we know from the data that participation alone will not deliver adequate retirement outcomes for everyone.

 

“Our report focuses on practical reforms that can improve outcomes without relying solely on higher employer contribution rates. That means rebuilding trust in the system, making engagement more relevant and accessible, using inertia more effectively, and exploring delivery models that can provide better outcomes for the same cost.

 

"The Pensions Commission's interim report rightly sets out the scale of the challenge. The priority now should be turning evidence into action through practical reforms that can be implemented in the short term. Millions of people are approaching retirement without adequate savings, and the challenge can no longer wait."

 

The report highlights that even modest changes can have meaningful long-term effects. Modelling included in the report shows that additional voluntary saving, earlier and greater saving through automatic enrolment and CDC-style risk sharing could materially improve retirement outcomes.