The re-establishment of the Pensions Commission in July 2025[1] marks one of the most significant developments in UK pensions policy in nearly two decades. Modelled on the original Turner Commission (2004-2006), the new Commission has been tasked with taking a long-term, evidence-based look at how the UK’s retirement system is working and where it needs to evolve.
Its mission is ambitious – to address the big questions of retirement adequacy, sustainability and intergenerational fairness in a pensions landscape far more complex than the one Turner faced 20 years ago. Auto-enrolment has brought millions into saving, but are people saving enough, and for long enough, to enjoy a secure retirement?
Why has the Pensions Commission been brought back?
The government’s decision to relaunch the Commission reflects a growing recognition that, while auto-enrolment transformed participation, it has not solved the problem of adequacy. Minimum contributions remain low and significant gaps persist, particularly for lower earners, women and those in non-standard or multiple jobs.
The new Commission’s remit includes:
- reviewing minimum contribution levels;
- expanding auto-enrolment coverage;
- tackling gender and income disparities in savings; and
- exploring collective and hybrid models, such as Collective Defined Contribution (CDC) schemes.
Its work will run through 2026, with a final report due in 2027, signalling a focus on lasting reform rather than short-term policymaking.
What are its limits?
The relaunch has been widely welcomed and echoes the Turner Commission’s legacy, which laid the foundations for auto-enrolment and NEST, reshaping workplace saving and reversing decades of decline. Yet for many, savings remain insufficient to ensure financial security in later life. The focus is now shifting from “getting people saving” to “getting enough saved”.
While a positive and much-needed step, the new Commission’s scope is narrow. It has been tasked with focusing on the state pension, aiming to “build on its foundations” rather than reform it directly. This may limit its ability to tackle the wider pensions ecosystem, including workplace and private savings, tax incentives and behavioural drivers of saving.
In a landscape that now includes defined contribution schemes, lifetime ISAs and other vehicles, such a narrow focus risks missing the bigger picture, particularly for those less financially engaged, for whom changes to state pension policy alone may have limited impact.
What challenges lie ahead?
An ageing population is putting increasing pressure on the sustainability of the UK’s pensions system. Life expectancy is rising, while the ratio of workers to retirees continues to fall. Maintaining both adequacy and affordability will be difficult. Measures such as encouraging later retirement or state pension deferral may need to play a greater role, although these raise difficult questions about fairness across generations.
Beyond demographics, there is also a structural challenge. The pace of social and economic change means that a one-off review, even a strong one, will not be enough. Many in the industry argue that what is needed is ongoing oversight and continuous adjustment, rather than another once-in-a-generation review. A standing advisory body could ensure that pensions policy evolves alongside how people live and work.
There is no single measure of what constitutes a “good enough” pension. For some, adequacy means replacing a proportion of pre-retirement income, while for others it is about achieving a basic standard of living.
Raising contribution rates may be part of the solution, but across-the-board increases could place unfair strain on lower earners. The Commission will need to explore more flexible and inclusive approaches, such as targeted incentives and tailored contribution pathways that reflect differences in income, gender and working patterns.
What could success look like?
Ultimately, the new Pensions Commission’s success will depend on how it defines and delivers adequacy. Striking the right balance between ambition and affordability will be key.
If it can match the independence, rigour and vision of the Turner Commission’s original work while adapting effectively to today’s more diverse and fragmented pensions landscape, the new Commission could once again shape the direction of UK pensions policy for a generation.
[1] Department for Work and Pensions and HM Treasury, “Government revives landmark Pensions Commission to confront retirement crisis that risks tomorrow’s pensioners being poorer than today’s” (Press Release, 21 July 2025) https://www.gov.uk/government/news/government-revives-landmark-pensions-commission-to-confront-retirement-crisis-that-risks-tomorrows-pensioners-being-poorer-than-todays
Lucy Cleary is a Trainee in the Dentons Pension team, based in the London office – for any further queries in relation to the above, please contact lucy.cleary@dentons.com
