The Department for Work and Pensions (DWP) warns that those retiring in 2050 may face tougher financial times than today’s pensioners.
Nearly half of working-age adults in the UK are not contributing to a private pension, according to DWP figures. Over three million self-employed workers have no pension savings, and just one in four low earners are putting money into a private plan. The department stresses urgent action is needed to boost retirement savings.
To address this, the DWP is working with the Pensions Commission and reviewing the State Pension age, currently 66 and set to rise to 68 by 2046.
Paul Nowak, General Secretary of the Trades Union Congress (TUC), stated:
“Everyone deserves dignity and security in retirement, but many – especially private-sector workers – risk not having enough to live on. Far too many, particularly women, BME groups, disabled workers, and the self-employed, remain excluded from workplace pension schemes.”
Source: GOV.UK
