Source · Select Committees · Work and Pensions Committee
Recommendation 34
34
Deferred
Establish a plan to ensure State Pension adequacy for all, reviewing undermining system aspects.
Recommendation
Once an objective for the State Pension relating to adequacy has been agreed, the Government should put in place a plan for getting everyone to that level. The first step should be to review those aspects of the state pension and benefits system that undermine its adequacy for some pensioners. (Recommendation, Paragraph 167)
Government Response Summary
The government states the Pensions Commission will examine the pensions system to build a future-proof, strong, fair, and sustainable system, considering adequacy and retirement outcomes, with its final report expected in 2027, deferring the immediate action of putting a plan in place.
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.