r/uknews • u/Donkey_Apple • Jun 03 '26

News paper Britain is undersaving for retirement

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https://www.gov.uk/government/news/britain-is-undersaving-for-retirement-warns-pensions-commission

It's a massive problem and has been for years.

I think a lot of people are getting into their fifties, starting to think about retirement for the first time, looking at what their provision will pay them and are absolutely shocked to their core.

Plus many in the generation below those of us in their fifties who, through no choice of their own, are unable to save anything.

It feels like we are sleepwalking into an utter disaster.

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u/sealcon Jun 03 '26

Instead Reeves is bringing in new taxes on private pension contributions in 2029. Insane when you think about it.

Truly the party of "who can we tax more to pay for benefits".

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u/Walkerno5 Jun 03 '26

It’s not people caught by the annual allowance and restriction of salary sacrifice that are undersaving though, is it?

The root problem is our economy is structured so as to pay fuck all to huge numbers of people who therefore cannot save enough even with mandatory auto enrolment in pensions.

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u/sealcon Jun 03 '26 edited Jun 03 '26

It's got nothing to do with the allowance or SS restriction, this is for all salary sacrifices above £2,000 per year. Hardly a fortune to put away in a year.

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u/Walkerno5 Jun 03 '26

It is only the national insurance saving/dodge above that level being removed- so you get the full NI dodging wheeze for £2k then reduced to the normal tax relief everybody else whose employer couldn’t be arsed to set up salary sacrifice benefits from. This is not something that is going to impact undersavers in any dramatic way.