It also considers where gaps remain in relation to coverage, adequacy, and sustainability, and how today’s challenges compare with those originally identified.
The Turner Commission was highly influential in setting out a blueprint for reform, centred on adequacy, sustainability, and coverage. Its work laid the foundations for automatic enrolment (AE) and the creation of the National Employment Savings Trust (NEST). AE has significantly increased participation in workplace pensions. However, contribution levels have not changed since AE was introduced, and voluntary saving remains limited, meaning many Defined Contribution (DC) savers are not currently on track for a sufficient pension.
The socioeconomic context has also shifted since the Commission reported. Stagnating earnings, falling homeownership, and the transfer of financial risks to individuals all pose challenges to pension adequacy. Around 8.3 million workers remain ineligible for AE, while median contributions are at the minimum 8%.
This research draws on a desk-based review of the Turner Commission’s reports and related policy documents, alongside consultations with senior stakeholders close to the work of the original Commission. The findings inform our understanding of how the UK pension landscape has changed and highlight issues for consideration by the current Pensions Commission.
Chris Curry, Director of the PPI said: “Both the pensions and socioeconomic landscapes have shifted significantly since the final report of the Turner Commission almost 20 years ago. Despite the Turner Commission changes having improved outcomes from the pensions system for many, it is clear that more needs to be done to ensure that millions of people don’t end up with inadequate incomes in retirement. The formation of the new Pensions Commission is timely as it looks to address many of the issues raised in this research.”
Expectations vs realities of the Turner Commission
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