Age UK statement in response to the Government announcement of a ‘Landmark Pensions Commission to tackle retirement crisis for future generations’

Caroline Abrahams, Charity Director at Age UK said: “We warmly welcome the Pensions Review, which has the potential to lay the foundations for a system of retirement saving that's fit for the future.  If we’re to avoid future generations of pensioners experiencing financial hardship, we need reforms that enable more people to build a decent standard of living, and we need them sooner rather than later to maximise the numbers who can be helped.

“Income for pensioners in the UK is based around both State and private pensions working together to help people enjoy a decent lifestyle once retired. The current system of saving has some significant gaps which have left many current pensioners struggling to make ends meet. Hopefully this can be avoided in future and particularly disadvantaged groups, including low-paid women and self-employed people on low incomes, can be helped to put money aside when appropriate for them to do so.

“There’s no getting away from the fact that the State Pension provides the bulk of retirement income for most pensioners, with 1.1million (13%) receiving all their income from the State. It’s therefore hugely important to consider the future of the State Pension alongside the role of private savings, as only once this is clear will it be possible to say with any accuracy how much people need to put aside to attain a decent standard of living once, they retire.

“We look forward to working with the Government and the reviewers in the months to come.”