The UK pensions industry has broadly welcomed the government’s decision to revive the Pensions Commission, with industry figures calling the move essential to addressing the growing issue of retirement income adequacy.
The UK government has relaunched its Pensions Commission today to tackle a growing “retirement crisis”, warning that future pensioners could be worse off than today’s. With nearly half of working-age adults saving nothing for retirement, the new commission will examine gaps in pension provision—particularly among women, low earners, the self-employed, and ethnic minorities. The final report is not expected until 2027.
Andy Bord, CEO of Railpen, one of the UK’s largest pension managers with £34 billion in assets under management, called the situation a “pensions adequacy crisis” and urged the Commission to fully include open DB schemes in its considerations.
“Our message to the new Commission is clear: open defined benefit (DB) pensions must be part of the conversation,” said Bord. “DB schemes not only provide member value, but adequate benefits for members in later life, and importantly, the peace of mind that this security brings.”
Bord emphasised the economic potential of reform that strengthens long-term returns for savers. He welcomed the government’s commitment to review pensions adequacy more holistically and highlighted the stabilising effect that well-managed DB schemes can offer both individuals and the wider system.
Patrick Luthi, CEO of UK workplace pension provider now:pensions, echoed this sentiment, describing the new commission as “an essential next step” for the UK’s pensions framework. “It has the potential to improve member outcomes, address adequacy gaps and inequalities, and build a system which is fair for all,” said Luthi.
Industry welcomes UK pension reforms but warns “devil is in the detail’
“We look forward to engaging with the Commission as it develops its evidence base and explores key barriers to saving, including how they impact different segments of the market,” Luthi said. He stressed the need for collaboration between industry, employers and policymakers to deliver workable solutions.
Luthi also drew attention to the gender gap in pensions, noting that under current structures, women are required to work 19 years longer in full-time roles to reach the same retirement savings as men. “We believe it is right for the Pensions Commission to have a focus on what can be done to improve the outcomes of these groups,” he added.
The issue of fairness was a central theme across industry responses. Many welcomed the Commission’s remit to examine adequacy through a broader lens, including coverage gaps in auto-enrolment, as well as the role of housing, the state pension, and employment patterns among underpensioned groups.
Jordan Clark, financial planner at investment manager Quilter, said the latest figures “paint a stark picture of retirement preparedness in the UK.” He noted that while only 13% of workers are undersaving for a minimum standard of living in retirement—mostly supported by the state pension—that number rises dramatically to 73% for those aiming for a moderate lifestyle and 91% for a comfortable one, based on benchmarks from the Pensions and Lifetime Savings Association, a UK industry body that represents pension funds and retirement savings providers. Clark also warned about poor engagement among older workers, citing government research showing that 77% of defined contribution pension holders aged 40–75 lack a clear plan for accessing their pension, while 21% don’t even realise they must make a decision.
Lou Davey, head of policy and external affairs at the Independent Governance Group (IGG), UK provider of professional pensions trusteeship and governance services said the policy “must extend well beyond the current government and shouldn’t face any further delays”.
“Alongside maximising the value delivered by investments in a pension scheme, the adequacy of contributions into defined contribution schemes must also be addressed, as must the consolidation of individual members’ pots – both issues being addressed in the Pension Scheme Bill as well as the newly announced adequacy review,” commented Davey
The current auto-enrolment system leaves out many groups entirely. According to Davey, these include low earners, those with multiple jobs and people who take career breaks — “disproportionately impacting women and ethnic minorities”. “It is only right that the review also examines these wider issues,” Davey added.
Davey also raised concerns about the retirement gap between renters and homeowners. “The additional retirement income that someone privately renting into retirement will need when compared to a homeowner is striking.
Finally, Davey urged policymakers not to rely too heavily on the idea that simply making pension schemes larger will automatically lead to better results for savers. She pointed to international examples that show bigger isn’t always better when it comes to member returns. Instead, she called for a more balanced approach — one that considers both value for money and whether people are actually saving enough for retirement.
