Today’s interim Pensions Commission report has been broadly welcomed by the industry with some urging the Commission to take 'meaningful action' that leads to 'structural change'.
Experts praised the focus on the 15m people undersaving for their retirement.
David Brooks, head of policy at consultancy Broadstone, said: “the Interim report bucks the trend of received wisdom around the success of auto-enrolment and the benefits of pension freedoms.”
He said millions of people are still sitting outside of the confines of auto enrolment, even those who are in a job, while many of those who are saving are not contributing adequately.
He said that in its final report due in spring 2027 the Commission should not be tempted to only focus on auto enrolment.
Mr Brooks said: “While increasing minimum automatic enrolment contribution rates will inevitably form part of the debate, this is unlikely to be a panacea given the current budgetary pressures facing many households.”
Rachel Vahey, head of public policy at AJ Bell, agreed. She said: “The Pensions Commission cannot pick and choose which parts of the retirement income equation they want to focus on. There are many elements which make up someone’s income for later life. The final report should consider the increasing number of people renting in retirement.”
She said the state pension also has to remain central to the debate. “For many people it will form the backbone of their retirement income, and workers need far clearer information about what they are likely to receive and when, rather than it being used as a political tool to garner more votes.”
Andrew Tully, technical director at Nucleus also stressed the need for clear communication. He said: “We’re seeing a deep erosion of trust in the retirement system. Constant tinkering with pension rules makes long-term planning feel pointless. The Commission is a step in the right direction, but confidence won’t return until people believe the rules will remain stable in the long-term.
“We need clear communication and a joined-up approach across pensions, housing and savings to give people the certainty they need to plan properly for the future.”
Jon Greer, head of retirement policy at Quilter, said that the interim report “is a useful snapshot of the scale of the UK’s retirement challenge, but the real test is whether it drives meaningful action rather than becoming another well-rehearsed diagnosis that fails to translate into reform.”
He said the core issue is no longer participation. “Automatic enrolment has brought millions into pension saving, but it has also exposed a deeper structural weakness. Too many people are contributing at minimum levels that are unlikely to deliver adequate retirement outcomes, creating a dangerous gap between perception and reality.”
Mr Greer stressed the need for structural change, “particularly for the self-employed, where the traditional model of locking money away until later life continues to act as a deterrent. More flexible savings solutions, alongside mechanisms that replicate the success of automatic enrolment in this group, will be essential if participation and adequacy are to improve together.”
On a wider note, Jamie Jenkins, Royal London’s director of policy, welcomed the report’s focus on the future. He said: “It's great to see this early thinking from the Pensions Commission, which is living up to its promise of taking a very long-term view of how we improve our retirement system for future generations. This is less about fixing things for my mother in her 80s, or me in my 50s, but it's squarely focused on my 8-year-old son.”
Catherine Foot, director of the Standard Life Centre for the Future of Retirement, said the Pensions Commission’s call for comments ahead of its final report is an important part of the process.
She said: “This is a pivotal year for pensions policy and we need to design a system that feels fair to the people who will live with it. That is why we need public engagement and the views of a wide spectrum of people to be considered.
“This type of engagement, known as deliberative democracy, must be central to the next phase of reform, with it playing a vital role in building trust and consensus among citizens on the shape of future pensions policy.”