Auto-enrolment has made retirement more secure for many. But some groups, including women, need more support
Recommendations from the government-backed Pensions Commission are not due until next year. But its interim warning that at least 15 million Britons are not saving enough for retirement already signals the scale of the challenge. The trend towards increasing longevity means that the issue of retirement incomes is unavoidable. At some point during the next decade, a threshold is expected to be reached whereby there are three pensioners for every 10 working-age adults.
The decision to reconvene this expert group was a good one. The automatic enrolment system it proposed has been a success, with around 90% of eligible employees signing up since 2012, along with their employers. But millions of low-paid workers, as well as the vast majority of self-employed people, face an uncertain future unless they too are helped to plan and save. One suggestion, made by the Institute for Fiscal Studies (IFS) as part of its own pensions review, was that HM Revenue and Customs could oversee a system whereby self-employed taxpayers would be enabled to make pension contributions at the same time as paying their tax bill.
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