UK DWP Warns Future Pensioners Face Widespread Poverty Risk

The UK government, led by Work and Pensions Secretary Liz Kendall, has launched an independent commission to address a looming crisis of pensioner poverty, warning that future retirees could be poorer than today's pensioners if action is not taken. The commission revives the Turner Pensions Commission from 2006, which had successfully increased pension saving through auto-enrolment, but now nearly half of working-age adults are not saving for retirement, with low earners, self-employed workers, and certain ethnic minorities particularly affected. Women face a significant gender pension gap, receiving roughly half the private pension income men do. Proposed reforms under consideration include lowering the auto-enrolment age and increasing contribution rates, while the government excludes changes to the triple lock state pension guarantee and tax relief from the commission’s scope. The commission aims to build consensus with business and consumer groups and is expected to report in 2027, emphasizing the need to adapt the pension system to ensure financial security for future retirees. The situation is described as a “tsunami of pensioner poverty,” driven by factors such as housing costs and insufficient savings among younger generations.