This Government are delivering change for all generations: lifting children out of poverty, providing opportunity through work, and offering security in retirement—with the revival today of the Pensions Commission to look at the long-term future of our pensions system and how it can support the retirement people expect and deserve, and is both fair and sustainable.
The last Labour Government halved pensioner poverty from its mid-1990s peak, with measures like pension credit boosting the incomes of the poorest pensioners. We also achieved major changes for future pensioners with the first Pensions Commission—2002-2006, that set the course for one of the great, public policy successes—ensuring over 10 million more people are benefiting from a workplace pension through automatic enrolment, alongside a fairer, simpler state pension, more generous to those who had done badly in the past, like many women. Twenty years have passed since the first Pensions Commission delivered its final report. It is time to finish the job. That means facing up to the challenges of tomorrow’s pensioners. Almost half the working-age population are not saving anything for their retirement and many who do are not saving enough. The situation is worse for certain groups. Women approaching retirement have half the private pension wealth of men. Only one in five of the self-employed are saving, with participation rates having dropped from 50% in the late 1990s. Automatic enrolment has been a gamechanger for young people between 22 and 29, with 86% of those eligible now pension savers, compared to 35% in 2012. For 18 to 21-year-olds, who just miss out on being eligible, the numbers saving plummet to just 21%.
There has also been a fundamental shift in where risk lies—from employers to individuals—with the move from defined benefit to defined contribution pensions, as well as greater pension freedoms. Rather than having a pension income for life, people now retire with a savings pot and face complex decisions about how to make the most of their pot and ensure it will last through retirement, often without much help.
On top of all these changes, we are an ageing society. By the 2070s, the number of pensioners is expected to have increased by over 50%, whereas the working-age population will have only grown by over 10%—making it even more imperative to help future pensioners put into a savings pot they can rely on in the future.
The Commission we are announcing today builds on the findings of the Pensions Investment Review, which published its final report in May 2025, and the reforms set out in our Pensions Schemes Bill to boost returns on savers’ pension pots and promote productive investment.
I am delighted that the Pensions Commission will be led by Baroness Drake, Sir Ian Cheshire and Professor Nick Pearce who together bring a wealth of public policy experience to such an important area.
Alongside reviving the Pensions Commission, I am also announcing the launch of the next statutory Government review of state pension age. In line with the legislation in section 27 of the Pensions Act 2014, I have asked the Government Actuary to report on adult life in retirement relating to state pension age. I have also appointed Dr Suzy Morrissey to prepare an independent report that will evaluate the factors Government should consider in determining state pension age.
The terms of reference for both the Pensions Commission and Dr Morrissey’s report will be made available today on the
www.gov.uk website.
Being retired should be a great joy—when after all your hard work, you finally have the time to do all the things that you love. The fact that we are living longer is something we should celebrate. By reviving the Pensions Commission, and completing the job of building a pensions system fit for the 21st century, I want to ensure everyone can look forward to retirement with hope, not fear.
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