Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what comparative assessment she has made of the adequacy of pension replacement rates in (a) the UK and (b) other Organisation for Economic Co-operation and Development countries.

The Government committed to carry out a landmark Pensions Review to deliver better outcomes for savers and the UK economy. Our focus is on building a system that supports people to save effectively throughout their working lives and provides a strong foundation for income in retirement.

Automatic Enrolment (AE) has helped over 11 million workers start saving into a pension since 2012, but we know some people still are not saving enough. In March 2023, DWP published new analysis into future pensioner incomes, showing that 38% of working age people (equivalent to 12.5 million people) are under saving for retirement when measured against Target Replacement Rates before housing costs and 12% are not saving enough to meet the Pension and Lifetime Savings Association’s minimum living standard. That is why the second phase of our Pensions Review will in the coming months look at further steps to improve pension outcomes.

OECD rankings show that the UK’s pensions system of the new State Pension and Automatic Enrolment will provide future workers with income replacement rates which are comparable to the OECD average, alongside countries such as Germany and Norway.