Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment she has made of the potential merits of a pensions adequacy review.

The Government remains committed to shaping the pensions system to serve the interests of savers and pensioners to provide security in retirement. The State Pension is at the heart of that commitment, and it provides a sustainable foundation to support people’s individual savings for retirement. The Government has made a commitment to the Triple Lock for the entirety of this Parliament which means spending on people’s State Pensions is forecast to rise by over £31 billion, this will see pensioners’ yearly incomes being up to £1900 higher.

Also crucially, Automatic Enrolment (AE) has succeeded in transforming retirement saving with over 11 million employees having been automatically enrolled into a workplace pension since 2012. However, we know we need to do even more to build on the success of AE in getting people in to saving by ensuring security in retirement for all. This is a key focus of our landmark pensions review.

We must first start by boosting the returns members can get from their savings. The first phase of our review is focused on investment and growth with the twin objectives of increasing investment in the UK and delivering improved returns for savers. In November 2024 we published the interim report of this review with consultations on unlocking the UK pensions market for growth and reforming the Local Government Pension Scheme. These consultations closed in January, and we expect to provide our response in Spring 2025.

We also acknowledge the importance of addressing the broader question of adequacy and how to build on the success of AE to ensure that people are saving enough for retirement. Therefore, the second phase of the review will in due course look at further steps to improve pension outcomes, and pension adequacy for all.