Drake warns 15 million in Britain face pensions shortfall — Pensions Commission Interim Report
Jeannie Drake said the pensions commission interim report shows 15 million people in Britain are not saving adequately for retirement. The commission warned that number could rise to 19 million without action, and Drake called for a “renewed national settlement on pensions.”
As many as 45% of working-age adults were not saving into a pension at all, while low and middle earners were most at risk. Around half of those workers were saving only at the minimum levels set by automatic enrolment.
Jeannie Drake and the report
Drake chairs the revived Pensions Commission, which published the interim report on pensions in Britain. She said, “The recommendations we present in our final report will address the need to secure adequate income in later life and a pension system that is fit for decades to come.”
The report points to a narrow group of workers carrying much of the strain. Just 4% of wholly self-employed workers were saving for retirement, and women approaching retirement had a median private pension wealth of £81,000 compared with £156,000 for men.
Automatic enrolment limits
The commission said about 30% of private pension pots were accessed at the earliest possible opportunity. Around half of private pension savings taken out early were withdrawn in full, and nearly half of that money went on large expenses such as a car, holiday or renovations.
The report links that behaviour to a wider shortfall in later-life income. It said millions more people could become reliant on state support in retirement unless action is taken, leaving large groups across the UK facing a severe cliff-edge when they retire.
From Blair to Starmer
The Pensions Commission was first established under Tony Blair’s government in 2002. Keir Starmer revived it last year, and it is expected to publish a final report with recommendations next year.
For workers already outside pension saving, the practical effect is immediate: the commission has put low saving, early withdrawal and weak self-employment participation at the center of its case for change.
