Pensions - Articles - Retirees in 2050 will receive less than those retiring today

 Retirees in 2050 are on course for £800 or 8% less private pension income than those retiring today.

 4-in-10 or nearly 15 million people are undersaving for retirement.

 45% of working age adults are saving nothing at all into a pension, with lower earners, the self-employed and some ethnic minorities particularly at risk.

 The Government also launched the State Pension Age Review, commissioning two independent reports for Government to consider when deciding the State Pension age for future decades:

 Damon Hopkins, Head of DC Workplace Savings at Broadstone: “The data released by the Government today demonstrates both the widespread level of inadequate saving and serious inequality within the system.

 “It is right that the Government is taking a long-term lens to its reforms via the Commission. While automatic enrolment (a result of the same Commission’s review in 2006) was a significant step in the right direction, almost half of working-age adults are still not saving into a private pension at all which means participation and levels of savings are key issues for the commission to address.

 “In doing so, any changes must stand the test of time as constant tweaking undermines confidence and doesn’t tally with the long-term nature of pension saving that employers and employees are being asked to make.

 “The launch of the State Pension Age Review is a necessary step and we would not be surprised to see an acceleration applied to the increase of the State Pension Age. The combination of an ageing population and the huge fiscal cost of the State Pension would suggest that a change is inevitable. A lower or later State Pension would, of course, double down the need for reform in the private savings landscape”