Catherine Foot, Director of the Standard Life Centre for the Future of Retirement: “As many as 17 million people are not saving enough to achieve the retirement they want, and the next two decades is when the effects of the savings crisis will really start to bite. The launch of a new Pensions Commission represents a critical opportunity to address how we tackle the looming savings crisis head on. Pensions have long been an area of frequent and significant intervention from governments over the years with policy choices made in one era often shaping outcomes for generations. It’s therefore vital that the Commission takes a step back and looks at the landscape as a whole. There’s an opportunity to examine how different elements of the system are working together and to set out a roadmap that can secure the buy-in of employers, as well as savers themselves over the long-term. Doing so will involve complex trade-offs, particularly around employer costs and households’ ability to save, but finding a path through these issues will help ensure future generations have good pension outcomes. The state pension plays a fundamental role in people’s retirements, so it makes sense that its role is considered as part of the broader question of saving adequacy. Any change will need to be very carefully considered, especially as state pension age is due to start rising to 67 next year already. We believe that any proposed change must satisfy the principles of fairness, adequacy, and long-term sustainability. Our own analysis has also revealed that the gender pay gap disadvantages women’s future finances because it means they are more likely to be contributing less to their retirement savings than their male peers. We found that this disparity is made worse by typical events that happen over the course of a woman’s life such as motherhood, divorce and caring responsibilities which can all disproportionately affect a woman’s earnings at different stages of their working lives, making it more difficult for them to save for the future. The values of workplace pension contributions diverge between men and women at 25-34 and the gap widens with age. It’s positive to see that the Commission will be made up of those from the previous review as well as experts from business and policy which will help forge a common view on the way forward, given the complexity of our pensions system. This independence has worked well in the past with the Turner Commission which laid the important foundations for automatic enrolment. This successfully laid the groundwork for higher participation, but current minimum rates will not provide enough savings for most people to achieve an adequate retirement income.”
Kate Smith, Head of Pensions at Aegon comments: “To really move the pension dial, we are calling for the new Pension Commission to make bold, brave and possibly unpalatable recommendations to the Government, such as implementing significant increases to auto-enrolment contributions during the next parliament for those on mid and higher incomes. We’re pleased the Pension Commission will investigate pension inequalities for key groups such as women, the self-employed and ethnic minorities, which will mean more people will save into a pension. Currently too many people are excluded from auto-enrolment as they don’t meet the current criteria – they’re too young, too old, self-employed or don’t earn enough. This includes those with multiple low paid jobs, who are mainly women. Since 2012, over ten million employees have been auto-enrolled into a workplace pension, but millions are under saving for their life after work and face a poorer income in retirement than today’s pensioners. Sources of inequality and affordability are often linked to the way the labour market works, the housing market, and societal norms, such as women taking on most of the caring responsibilities. These are not issues that can be addressed by pensions policy alone. Helping people to understand what an adequate retirement income looks like, and how much they need to save to achieve this, could help more people secure a comfortable and sustainable retirement income. Twenty years ago, the first Pension Commission set out replacement rates linked to working age earnings. This is an opportunity for the second Pension Commission to update these and to carry out a detailed analysis of how much people need to save regularly to achieve an adequate retirement income. This could also inform any future increases in auto-enrolment minimum contributions. We’re disappointed there is no mention of the 2017 reforms to auto-enrolment. Implementing these could go some way to removing pension inequalities. As widely expected, the government has ruled out any increase to auto-enrolment contribution rates this parliament. Employers may be pleased about this given April’s increase in National Insurance contributions, but the reality is that without higher pension contributions, mandated or voluntary, many people could face a bleak retirement. Pensioners will be pleased that there will be no change to the triple lock during this parliament. But any further increase to the State Pension Age could affect how much people need to save privately to have an adequate retirement income from their chosen retirement age.”
Emma Douglas, Wealth Policy Director at Aviva, said: “We warmly welcome the second stage of the Pensions Commission. Progress in narrowing the gender pensions gap has been slow, and without action, parity could remain decades away. Aviva’s pension contribution data (June 2025) highlights a concerning trend: mid-life women are facing a widening pension gap. Over the past four years, the gap for women aged 30 to 45 has grown by an average of 3%. Auto-enrolment reforms offer a valuable opportunity to accelerate change. To ensure success, we urge the government to set out a clear roadmap detailing how and when these reforms will be implemented. A phased approach will give employers and savers the time they need to prepare - helping to secure better retirement outcomes for millions of workers. We look forward to actively engaging with the Commission and contributing to a pension system that supports UK growth and delivers stronger outcomes for all savers.”
António Simões, CEO of L&G said: Saving enough for retirement isn’t just important, it’s urgent to securing individual futures and building a more prosperous society. To do this we must tackle adequacy - we need people to be able to contribute the right amount from the first pound they earn, and to build a pot that is invested in assets that will generate returns to support them in later life. That’s why the launch of the new Pensions Commission matters. Whether that is gradually increasing minimum auto-enrolment contribution rates or making it easier to access private market investments, like L&G has delivered through its Private Markets Access Fund, it is time to break down the barriers to building a retirement pot that are faced by millions across the country."
Ruston Smith, PMI Chair: "We welcome the launch of a second Pension Commission and the appointment of such a distinguished panel, including Baroness Drake whose legacy in shaping the UK’s retirement system is profound. This is a vital opportunity to tackle under saving and improve outcomes for those most at risk. With decades of inadequate savings ahead of us, we urge the Commission to take a holistic view of lifetime financial security and to set a clear timetable for reform—to avoid further delay."
DWP launch of new Pensions Commission announcement
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