The Department for Work and Pensions (DWP) warns that people retiring in 2050 face worse financial conditions than today's retirees without urgent measures to enhance retirement savings. Currently, nearly half of working-age individuals do not contribute to private pensions, a problem exacerbated among low earners, the self-employed, women, and certain ethnic minorities. Future retirees may experience a yearly pension shortfall of 8%. Significant disparities exist in pension wealth, particularly a 48% gender gap, leading the DWP to revive the Pensions Commission for reforms on this issue.
The government has warned that people retiring in 2050 will be worse off than pensioners today unless action is taken to boost retirement savings.
Almost half of working-age adults are not putting any money into a private pension, particularly affecting low earners and the self-employed.
People drawing their pension 25 years from now are set to be 8% worse off per year than their counterparts today, according to the DWP.
The DWP revealed a 48% gender gap in private pension wealth, with typical women receiving just over £100 a week compared to £200 for men.
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