Auto Amazon Links: No products found. Blocked by captcha.
The government has issued a warning that future retirees will face a financial setback if steps aren’t taken to increase retirement savings. The Department for Work and Pensions (DWP) is resurrecting the Pensions Commission, established nearly two decades ago, to address this looming issue. According to the DWP, almost half of working-age adults do not contribute to private pensions, with low earners and self-employed individuals being the least likely to save for retirement.
The gender and ethnic disparities in pension savings are also cause for concern, with only one-in-four individuals of Pakistani or Bangladeshi background saving in private pensions. The DWP predicts that individuals obtaining pensions in 2050 will experience an 8% or £800 reduction annually compared to current pensioners, highlighting the pressing need for action. The revival of the Turner Pension Commission, which catalyzed automatic enrollment in pension saving back in 2006, is expected to address the current lack of savings adequacy.
The current landscape reveals startling statistics, such as more than three million self-employed workers not saving for retirement and a concerning gender gap in pension wealth. While the Commission will not directly address issues concerning state pension costs, it aims to dissect the private sector pension savings scenario. Stakeholders including trades unions, employers, and experts will convene to explore barriers preventing individuals from bolstering their retirement funds and establish a cohesive strategy for the future.
Kate Smith, head of pensions at Aegon, advocates for substantial increases in auto-enrollment contributions post-2029, emphasizing the need for bold recommendations. The Trades Union Congress has hailed the initiative as a crucial advancement towards ensuring retirement security and dignity for all workers. As the population ages, it becomes increasingly imperative to address the savings crisis in order to prevent future financial hardships for millions of individuals in their retirement years
Read the full article from The BBC here: Read More
Auto Amazon Links: No products found. Blocked by captcha.