UK faces pension savings shortfall affecting millions

A new report from the UK Pensions Committee warns that the country's retirement savings model is inadequate for millions of workers. About 15 million people – roughly half the workforce – are projected to have insufficient pension savings, a figure that could rise to 19 million within a decade.

The shortfall is driven by low participation in pension schemes, especially among the self‑employed and freelancers, where only 15‑20 % contribute regularly. Stagnant wages, soaring housing costs and higher energy and food prices have forced many households to prioritize immediate expenses over long‑term saving.

The committee urges immediate reforms, including higher employer contributions, measures to boost scheme enrolment and a review of the automatic enrolment system, to avert a broader social and fiscal crisis.