The government wants to boost retirement adequacy and has revived the Pensions Commission to come up with solutions.

The new Commission is seeking views from businesses, unions and taxpayer groups and will make its recommendations in 2027. This consensus approach mirrors the first Pensions Commission, launched over 20 years ago, which led to the creation of auto-enrolment (AE). Many more people now save into workplace pensions, but there are concerns that most are not saving enough to fund a comfortable retirement.

The Commission is expected to recommend an increase to minimum contribution levels, which are currently set at 5% of ‘qualifying’ earnings for employees, with employers contributing a further 3%. The Pensions and Lifetime Savings Association (PLSA) is calling for 12% minimum – split between employer and employee.

Bear in mind that a ‘comfortable’ retirement is now likely to cost a couple £5,000 a month according to the PLSA – which will require substantial savings during people’s working life.

You certainly don’t have to wait until the Pension Commission reports to boost your pension funds. If your employer offers a ‘matching’ scheme, then consider increasing pension payments via this scheme first. Alternatively, it could make sense to look into personal pensions or SIPPs, particularly if you’re self-employed.

If you’re paying at the minimum AE level, or haven’t increased pension contributions for years, you may want to review whether you are on track for the kind of retirement you’d like and take advice.