The UK pension system faces many challenges.

VTV.vn - The UK Pensions Commission has warned that around 15 million people in the country are currently not saving enough for retirement, and this number could rise to 19 million.

He is pushing for pension system reforms in the face of an aging population.

The UK Pensions Commission has warned that around 15 million people in the country are currently not saving enough for retirement, and this number could rise to 19 million if reforms are not implemented promptly. According to the commission, UK workers risk a significant drop in their standard of living in retirement due to insufficient long-term financial resources.

One notable finding is that approximately 45% of working-age people, or 18 million, are not currently participating in any form of retirement savings, even though nearly half of them are employed. For self-employed workers, the retirement savings participation rate is particularly low, at only about 4%.

The report further indicates that approximately half of workers contribute only the minimum amount under automatic retirement savings programs (Automatic Enrolment), while lacking other supplemental savings sources. Additionally, the trend of early retirement withdrawals is increasingly common, with around 30% of individual retirement funds being used as soon as eligibility is reached, and half of that being withdrawn entirely for large expenses such as car purchases, home repairs, or travel .

UK Pensions Commissioner Jeannie Drake argues that, despite the positive results of pension reforms over the past two decades, millions of people remain unprepared for retirement. According to Drake, Britain needs to develop a “new national pension agreement” to ensure stable income for its citizens in the future.

Meanwhile, UK Labour Secretary for Pensions Torsten Bell noted that while people in the country are gradually returning to retirement savings habits, the process is "only half complete." Bell warned that without early action, millions could become dependent on government assistance in their old age.

The UK Pensions Commission said it will continue consulting with stakeholders over the next year before publishing its final report and reform recommendations in early 2027. The UK government has stated that it is not considering changing the minimum contribution level for the Automatic Enrolment scheme during the current parliamentary term.

Source: https://vtv.vn/he-thong-huu-tri-tai-anh-doi-mat-nhieu-thach-thuc-100260521135106938.htm