Nearly half of UK working-age adults are saving nothing into a pension, leading to concerns about retirement living standards. The government is considering raising the state pension age sooner to address this issue. The Pension Commission has been revived to review retirement savings and may recommend changes to increase private pension contributions or adjust the state pension age.
The UK state pension triple lock, which guarantees pension payment increases, is becoming costly for the government due to high inflation rates. Adjusting the state pension age upwards could help manage this strain, but may be met with resistance. The government is looking to address the issue of under-saving for retirement through potential changes to the pension system.
The government’s decision to review retirement savings introduces uncertainty for savers and investors. The original UK Pensions Commission led to the introduction of auto-enrolment, but it took years for recommendations to be implemented. The current review may lead to changes in private pension contributions, state pension age, or other aspects of the pension system to improve retirement savings. Nearly half of UK working age adults are not saving anything into a pension, as companies are hesitant to increase contributions. The government’s pension triple lock policy is costing billions. More pension savings are now being channeled into private assets. Former UK Chancellor of the Exchequer George Osborne opposed the idea of a second pension commission during his time in government.
Read more at Morningstar UK
Nearly half of UK working age adults are not saving any money into a pension, posing challenges for retirement planning. Companies are hesitant to boost pension contributions, impacting employees’ ability to secure their financial future. The government is faced with billions in costs due to the pension triple lock policy. More pension savings are being funneled into private assets, indicating a shift in investment trends.: Will the UK State Pension Age Rise Sooner Under New Reforms?