Pension Commission to look at why four-in-ten fail to save enough

People retiring in 2050 will be worse off than pensioners today, the government has warned, unless action is taken to boost retirement savings.

The Department for Work and Pensions (DWP) is reviving the Pensions Commission, which first reported nearly 20 years ago, to look at how to tackle the issue.

Almost half of working-age adults are not putting any money into a private pension at all, with low earners and the self-employed less likely to be pension saving, the DWP said.

The shortfall is also worse among women and some ethnic groups, with only one-in-four people of Pakistani or Bangladeshi background saving in a private pension.

People drawing their pension 25 years from now are set to be £800 or 8% worse off per year than their counterparts…