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The press release issued by the Department for Work and Pensions on 19 May 2026.

The Pensions Commission has today (19 May) published its interim report on the state of retirement saving in the UK, setting out the key challenges facing the current system and where it will focus its work next.

• Interim report highlights key challenges in retirement saving across the UK with 15 million people currently undersaving for retirement.
• Findings sets direction for further work to improve retirement outcomes ahead of final recommendations in 2027.
• Commission set up as part of government’s wider reforms to pensions system to help more people retire with dignity.

The Pensions Commission has today (19 May) published its interim report on the state of retirement saving in the UK, setting out the key challenges facing the current system and where it will focus its work next.

The report highlights that many people are not saving enough for retirement, particularly among low and middle earners, the self‑employed and women, and points to the need for the system to evolve to meet modern working lives.

There are currently 15 million people under saving for retirement which could reach 19 million without action, leaving large groups across the UK facing a severe cliff-edge when they retire, according to a new report from the Pensions Commission.

Set up by the Government in July 2025, the Commission aims to address a savings challenge that has been building for decades, examining why tomorrow’s retirees’ risk being worse off than today’s and making recommendations to reverse this.

This follows the success of the 2002 to 2006 Commission which built a consensus for the roll-out of Automatic Enrolment into pension saving, resulting in 89% of eligible employees now saving into their pensions, up from 55% in 2012.

Its findings include:

• Low and middle earners are most at risk, with around half saving only at minimum Automatic Enrolment levels with little else to fall back on.
• 45% of working-age adults – around 18 million people – are not saving into a pension at all, despite nearly half of them being in work.
• Where employers are contributing about the statutory minimum this is largely benefiting higher earners.
• Just 4% – one in 25 – of wholly self-employed workers are saving for retirement, and it’s even lower among younger self-employed people.
• On current trends around 3 in 10 private pension pots are accessed at the earliest possible opportunity with half of all pots taken out in full. Nearly half of these are spent on large expenses like a car, holiday or renovations.

The Commission examined why tomorrow’s retirees are on track to be poorer than today’s with too many working age adults are saving nothing at all into a pension. A final report with recommendations will follow in early 2027.

Pensions Commissioner, Baroness Jeannie Drake said:

Over the past two decades since the Turner Commission there is no doubt pensions reform can be described as a success. Yet the second Pensions Commission is looking forward and seeing many people not saving enough and millions not saving at all.

This demands a renewed national settlement on pensions.

Achieving this will require clarity of purpose, but it also offers a moment of opportunity; to renew a social contract that commands confidence across the country.

The recommendations we present in our final report will address the need to secure adequate income in later life and a pension system that is fit for decades to come.

The Commission will set out the course to improving future outcomes whilst ensuring the system is fair and sustainable within and between generations.

Minister for Pensions, Torsten Bell MP, said:

Britain has got back into the pension saving habit, but the job is only half done with tomorrow’s pensioners still on track to be poorer than today’s.

The Pensions Commission sets out clearly the scale of the challenge: not enough people are saving for retirement, and many of those that are aren’t saving enough.

The Commission warns that without action millions more people could be at risk of becoming reliant on state support in retirement.

It adds that there is much for public policy to do to shape the future of pensions, whilst maintaining the broad political consensus pensions has had since the Turner Commission in the 2000s. The Commission is clear that change must happen in the right way, with any recommendations for change implemented gradually. The Government has ruled out any changes to Automatic Enrolment contributions this Parliament.

Dr Yvonne Braun, ABI Director of Long-Term Savings Policy said:

The report makes a powerful case for a new national settlement for pensions. Automatic enrolment is a sturdy foundation, but must evolve to meet the scale of the challenges ahead.

We and our members stand ready to work with the Commission to deepen saving, extend coverage and support better decisions in retirement, so that everyone can look forward to greater financial security in later life.

Over the next year the Commission will hear a wide range of views before presenting its final report and recommendations in early 2027. A call for views from all interested parties has also launched today.

Rocio Concha, Director of Policy and Advocacy at Which? said:

Which? welcomes this interim report from the Pensions Commission and the valuable evidence it brings together on the UK’s pension adequacy challenge. It is very encouraging to see recognition of the need to increase private pension saving rates and coverage, while also acknowledging the financial pressures caused by the cost of living crisis.

The report rightly highlights that too many working people are projected to reach later life without sufficient savings, and that women, carers, the self-employed and many ethnic minority groups continue to face structural barriers. It is also promising to see a strong focus on how to support people to use their pension savings throughout retirement.

Which? looks forward to continuing to work with the Commission, industry and wider civil society groups to help drive the reforms needed so people are better prepared for retirement.

Julian Mund, Chief Executive of Pensions UK, said:

Pensions UK welcomes the breadth and ambition of this report, and shares the Commission’s view that we need a new national settlement on pensions.

Evidence presented in the report clearly strengthens the case for more pension saving over longer working lives, alongside systemic change that delivers sustainable incomes – building on welcome reforms in the Pension Schemes Act.

We look forward to working with Government to explore how that diagnosis can be turned into a practical roadmap for reform, well before the next generation fall short of the retirement incomes they expect and deserve.

Caroline Abrahams, Charity Director at Age UK:

We welcome this new report from the Pensions Commission, which provides an excellent analysis of the problems facing our pensions system today. This is the first and necessary step for ensuring the pensions system of the future enables tomorrow’s older people to have a decent standard of living.

There’s a clear need to improve the way the State Pension and private pension systems work together; otherwise people on low incomes are at risk of falling through the cracks and hurtling towards their retirements without the required funds, or the time to make up the shortfall. We look forward to working with the Commission as it explores the best solutions for future pensioners.

Aside from the commission, the government is also reforming the pension landscape and improving retirement for today’s workers. The Pension Schemes Act, passed this month, will benefit 22 million workers by up to £29,000 by the time they retire, driving down costs, boosting returns and enabling the automatic consolation of small pension pots to ensure every pound saved works harder for working people.

Louise Hellem, Chief Economist, CBI, said:

The publication of the Pensions Commission’s interim report is an important step towards building a long-term framework that delivers adequate living standards in retirement. Getting this right requires the government, businesses and individuals all to play their role in supporting better saving.

As the debate progresses, it is vital that retirement adequacy is considered hand in hand with the UK’s growth ambitions. Strong economic growth underpins sustainable pension outcomes by supporting employment and higher sustainable wage growth, enabling individuals to save, and driving stronger investment returns over time. It is only growth that can sufficiently reduce difficult trade-offs and maintain political, public and business support for change.

TUC General Secretary Paul Nowak said:

Workers deserve a pension system that guarantees against poverty in retirement and enables them to maintain their standard of living.

Although millions more people are now building up workplace pensions, far too many on low and middle incomes are not heading for a decent retirement – with women, Black and minority ethnic and disabled workers, and those in the gig economy at highest risk.

The Commission must now develop a bold plan to fix this, which will need to include higher employer contributions and a fair deal for those currently missing out.

Nausicaa Delfas, Chief Executive of The Pensions Regulator, said:

The pensions system is still unfinished business with too many people on track for an inadequate retirement income. That is why we welcome the Pensions Commission report, and look forward to continuing to work with the Commission, Government and industry to create a system which delivers what matters most: a sustainable income in retirement for everyone.

The press release issued by the Department for Work and Pensions on 19 May 2026.

Young people across the East and West Midlands will have more work opportunities as Severn Trent becomes the latest backer of a government drive to tackle youth unemployment, pledging 400 roles in the water industry.

• Severn Trent is the latest backer of the Youth Guarantee, the Government’s scheme to give every young person the chance to earn or learn  
• The company is creating 400 employment opportunities for young people across the Midlands, supporting Government action to tackle the water sector’s skills shortage 
• Youth Guarantee has already received backing of major employers including McDonald’s and the Premier League 

Severn Trent, one of the largest water and sewage companies in England and Wales, says the opportunities for 16 to 24-year-olds will be created over the next three years as part of a new programme. They will include six-month paid work placements across a wide range of roles within the company, including a variety of operational roles and customer support agents.

To support those from all backgrounds, 25 of the opportunities each year will be ringfenced for young people who have experience being in care. 

Severn Trent is the latest major employer to back the Government’s Youth Guarantee, which aims to give every young person the chance to earn or learn. Other supporters include the Premier League, Channel 4, Royal Shakespeare Company and Pinewood Studios.  

The Youth Guarantee and Growth and Skills Levy reforms are backed by £2.5 billion investment, providing employment support for almost a million young people and unlocking up to 200,000 jobs and apprenticeship opportunities. 

This comes in response to the rise in recent years of young people not in employment, education or training (NEET), which is close to one million.   

Severn Trent’s commitment also comes as an important step in tackling the serious skills shortage facing the water sector, with 35% of skilled jobs currently going unfilled.  

To mark the new partnership, the Minister for Skills Jacqui Smith visited Severn Trent’s training academy in Coventry, which opened in 2021, to meet young apprentices developing skills in operations, engineering and other specialist roles. At the site, learners train by practicing real repairs using indoor and outdoor rigs that simulate live water networks. 

Baroness Jaqui Smith, Minister for Skills said: 

Every young person deserves the opportunity to build a career they’re proud of and that is exactly what we are making happen through the Youth Guarantee.

It is great to see Severn Trent joining a growing number of household businesses backing our mission to open doors and deliver real opportunity across the country.

Their commitment shows how working hand in hand with businesses provides young people with the skills, the confidence and the chances they need to succeed.

Daniel Jackson, 19 Water technician who led the tour with Minister Smith said:  

To be asked to lead the tour with the Minister was a real privilege. I started as an apprentice, and the Academy really helped give me the learning and opportunity to do well. I completed my programme and am now part of the leakage team – finding and fixing leaks and supporting our customers, and I love it. I’m excited about where my career will take me. 

Neil Morrison, HR Director at Severn Trent said:  

We know giving a young person that first opportunity can be game changing, and at Severn Trent we are committed to providing experiences that result in positive outcomes. The Youth Guarantee is a great example on how we can come together to do just that. 

Welcoming talented young people into our organisation, who bring with them new ideas and fresh perspectives ultimately help us be better as a business. We firmly believe no matter what organisation or business you are, there’s a role to play in unlocking genuine pathways for young people.

The Government is working to boost opportunities for young people more widely in the water and utilities sector, with conversations ongoing with Anglian Water, the RPS Group and M Group.

The new placements build on the 500 work experience placements Severn Trent already provide annually, and 100 new apprenticeship opportunities each year, providing a vital route into skilled employment for young people at the start of their careers.

The Government is working hand in hand with sector leaders to open up early career routes for young people, through both the Youth Guarantee and the Energy & Utility Skills Sector Entry Pilot.

The pilot is delivered jointly by DWP and Energy & Utility Skills, and offers nine accredited training modules, guaranteed interviews and has an expected 75% progression rate into work. Industry leaders including the National Grid, M Group, Murphy’s and Severn Trent have already committed to the scheme.

The package of measures under the Youth Guarantee include a Youth Jobs Grant worth £3,000 for employers for every young person they hire aged 18-24 who has been on UC for six months, an expanded Jobs Guarantee offering subsidised work for eligible 18 to 24-year-olds, and new foundation apprenticeships in key sectors, including hospitality.

On top of this, the government is continuing its commitment to delivering Youth Hubs to every local area in Great Britain to establish a national network and address the almost one million young people not earning or learning – a rise of 248,000 between 2021 to 2024 – so that every young person can progress wherever they live.

Alongside these measures, JobHelp provides young people with free, practical support to navigate their job search from CV tips and interview guidance to training opportunities and government support all in one place.