The government’s Pensions Review, which will look at ways to expand workplace pensions auto-enrolment, could be launched before parliament’s summer recess next week (22 July 2025).
The review centres on the ‘adequacy’ of retirement savings as there are widespread concerns that many people are not putting enough aside for retirement.
This review is the second part of the government’s landmark plan to overhaul the UK pension system. It did not feature in chancellor Rachel Reeves’ Mansion House speech this week, but it was discussed in the Work and Pensions Committee (16 July) as Liz Kendall, work and pensions secretary, told MPs to expect more information before parliament packs up for the summer.
“There will be more to say about pensions before the house goes into recess, in terms of some of the longer-term challenges facing today’s workers and tomorrow’s pensioners.
“I am very concerned about the adequacy of pensions. There is the huge benefit of auto-enrolment, but many people are still not saving, and that is a real risk for them,” the minister said.
The Department for Work and Pensions said it will publish three reports on Monday 21 July, titled ‘Analysis of Automatic Enrolment saving levels’, ‘Analysis of Future Pension Incomes 2025’ and ‘Gender Pensions Gap in Private Pensions’, adding weight to suggestions the review could be launched next week.
Damon Hopkins, head of DC workplace savings at consultancy Broadstone, said: “The launch of the long-awaited review on pension adequacy will mark a critical inflection point in the nation’s retirement finances. Hiking contributions is undoubtedly the fastest way to tangibly increasing savers’ pension pots so they can enjoy a good standard of living in retirement and is likely to feature prominently in review.
“We face a huge retirement adequacy problem with profound social impacts following the Office for Budget Responsibility’s recent warning that low pension savings could lead to a greater reliance on the government to support pensioners via a benefits system which is already unaffordable. Understanding the role of the state pension and closing the pensions gender gap should also be an important focus of the review.
“While reforms should ultimately bolster the long-term financial security of workers, the government will need to be wary of the financial burden on employers. Given the recent increases in national insurance contributions, and the national minimum and living wage rates, employers will need to start considering how they manage potential increased pension cost across the medium-long term.”
