21-07-2025
DWP State Pension Age could rise more quickly after review
Third Review of State Pension age will be an independent report by Dr Suzy Morrissey.
New analysis today also reveals a stark a 48% gender pensions gap in private pension wealth between women and men.
A typical woman currently approaching retirement can expect a private pension income worth over £5,000 less than that of a typical man (just over £100 per week for a woman compared to just over £200 a week for a man).
While the introduction of Automatic Enrolment increased the numbers saving, saving levels have often remained low. Around 1-in-2 workers in the private sector only save around the minimum contribution level (8% or less of earnings).
Philly Ponniah, chartered wealth manager and financial coach at Philly Financial, says that "while auto-enrolment was a great start, it's not a full solution".
She continues: "Yes, it's brought millions into pension saving, but most are stuck at the minimum 8%, and that's simply not enough for a comfortable retirement.
"Employers are under pressure, too, and it's understandable that many can't stretch contributions further right now, especially with higher national insurance costs. But that makes personal awareness even more important. People need to know what 8% really gets them, and why it matters to put more aside for the future.
'The shift from Defined Benefit to Defined Contribution means the risk and responsibility now sits with the individual. Without better education on investing and understanding risk, many will unknowingly fall behind. It's not just about saving more, it's about making what you do save work harder. Otherwise, we risk creating a generation that thinks they're doing the right thing, while falling short.'
Scott Gallacher, director at Rowley Turton, said the government set the bar too low: "When the government introduced auto-enrolment, they took the easy way out by setting the bar too low.
"The qualifying earnings threshold hits part-time workers hardest, especially those in retail and hospitality, sectors dominated by women.
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'In my view, this structure amounts to a form of indirect sex discrimination and I've never understood how it was allowed to happen. I raised the potential for indirect sex discrimination with the government at the time, but never got a straight answer.
"If we're serious about closing the gender pensions gap and improving retirement outcomes, fixing these flaws in auto-enrolment must be a priority.
"That said, fixing it now, during a time of economic pressure, is a tough ask. But if we don't address these structural flaws soon, we'll be locking in poor retirement outcomes for millions.'
