Liz Kendal announced this week that it was reviving the Pension Commission as the government tried to describe it as a “pensioner poverty tsunami”.
Work and Pension Secretary said that the government is “ready to deal with the obstacles that prevent a lot of savings in the first place” Their department found that people who retired in 2050 are on track to be poor today than retiring, which expects to reduce £ 800 in private pension income.
Currently, only 55 percent of adults working in the UK are contributing to adult pension pots, and MPs have said that pensioners require UK-wide strategy to address poverty.
But Britain’s pension dilemma is not unique. Countries around the world are struggling with similar looming crises, inspired by combination of factors including demographic changes, low interest rates and economic instability.
Here, The Independent takes a look at what action the other governments are taking to overcome the imminent crisis.
United States
In the United States, all private-field workers are unable to get a retirement plan through their jobs, according to a survey published by Pew Charitable Trusts, according to a survey published in June.
America’s most common workplace retirement plan is a 401 (K), which voluntarily allows the employees to invest one side for retirement that usually matches by their employers. The total employee and employer contribute to 401 (K) may not exceed $ 70,000 per year.
According to a survey by Financial Services Firm Credit Karma in 2023, about 27 percent of Americans over the age of 59 have no savings to retire on their retirement.
Last week, The Wall Street Journal reported that the Trump administration was expected to sign an order that would open 401 (K) S in private markets.
This will order the US Labor Department and the Securities and Exchange Commission to create guidance for employers to include private assets in 401 (K) schemes, which, in turn, can create more investment opportunities for them.
Canada
Currently, the major challenge for many countries remains a lower rate of pension savings.
This year, the healthcare of Ontario Pension Scheme, Canadian Pension Fund Hopapp, Canadian people working more than half (59 percent) do not assume that they will have enough money to retire.
However, Canada is dealing with it through an increase in rate within its savings system.
The government has expanded the Canada Pension Plan (CPP), a monthly benefit that changes the percentage of a person’s income after retiring.
Between 2019 and 2025, it has increased the percentage that the earnings of a worker have been changed from 25 percent to 33.33 percent.
This has increased the maximum level of income protected by the CPP by 2024 and more than 2025 14 percent.
Australia
Australia is recognized as one of the world’s top pension schemes, where employers need to pay one percent of their employees’ earnings in an account, which the employee can reach after retiring.
By this month, employers now need to contribute 12 percent to the retirement savings accounts of employees, which is more than 11.5 percent.
They are also taking steps to shut down the gender pension pay gap with the Labor Government, with the beginning of a supernation top up for parents, taking time out to take care of a newborn baby.
Cityuk CEO Miles Seleck said: “If we want to simulate the successes of Australia and Canada, the total contribution will have to increase.
“This will include technical changes in policy and regulation as well as difficult political options.”
France
In 2023, French President Emmanuel Macron increased the retirement age from 62 to 64, leading to large -scale public backlash and protests.
Macron’s administration argued that improvement was necessary to prevent long -term deficit in the pension system.
At that time, Macron said that he did not enjoy passing the improvement, but called it a requirement, “The longer we wait, the higher (deficit) will deteriorate.”
With the aging of retirement, France has increased the minimum contribution requirements of 2 percent this year in all bands this year.
The minimum contribution applies to retirement pension under its pension insurance scheme.
Germany
In Germany, the retirement age is gradually being increased from 65 to 67. Like many governments across Europe, it is trying to reduce the pressure on the pension system created by the aging population.
Last year, it approved pension reform and its new government has set a series of several policies including maintaining the amount paid to retired people every month – which is 48 percent of the average monthly salary.