Source · Select Committees · Work and Pensions Committee
Recommendation 32
32
Deferred
Consult on State Pension objectives, aiming for dignified living standards and reducing pensioner inequality.
Recommendation
The pensions adequacy review should consult on objectives for the State Pension, taking account of adequacy, sustainability and fairness. Given that it is the core of the Government’s offer to pensioners, relied on by many pensioners on low incomes, a guiding principle should be that it provides the amount needed for a minimum, dignified, socially acceptable standard of living. The Government should set a strategy to reduce both the proportion of pensioners living below this level in future and inequality between pensioners. (Recommendation, Paragraph 161)
Government Response Summary
The government states the Pensions Commission, due to report in 2027, will examine the pensions system, including considerations of adequacy and improving retirement outcomes for vulnerable groups, but does not commit to consulting on specific State Pension objectives or setting a strategy now.
Government Response
Deferred
HM Government
Deferred
The Government is committed to enabling tomorrow’s pensioners to have security in retirement which is why we announced a landmark review of the pensions system days after coming into office last July. The Pensions Investment Review focused on boosting savers returns, investment and economic growth. Now the revived Pensions Commission. led by Baroness Jeannie Drake, Sir Ian Cheshire, and Professor Nick Pearce and is focused on the pension outcomes which the overall system of state and private pension delivers. The Government has asked the Pensions Commission to examine the pensions system as a whole and look at what is required to build a future-proof pensions system that is strong, fair and sustainable. The Pensions Commission’s terms of reference Pensions Commission: Terms of Reference - GOV.UK specifically include considerations of adequacy and how to improve retirement outcomes, especially for those on the lowest incomes and at the greatest risk of poverty in retirement and groups that are currently under-saving. The Commission has begun its work and will consider all of the evidence as part of its workplan, which will also include engagement with a broad range of stakeholders before preparing their recommendations for the Government to consider. The Commission is expected to submit its final report to the government in 2027.