Future pensioners to be worse off, government warns

The Department of Work and Pensions (DWP) has warned that future pensioners are likely to be worse off than current retirees. According to the government's estimates, four out of ten people are not saving enough for their retirement. The report highlights several factors contributing to this problem, including the decline of defined-benefit pension schemes, rising cost of living, and the economic impact of the COVID-19 pandemic. As a result, many individuals may struggle to maintain their standard of living after retirement. The DWP has urged people to start saving more and consider their long-term financial planning. The government is also exploring ways to encourage greater pension savings, such as through automatic enrollment and improving financial education. The report underscores the growing challenge of ensuring adequate retirement income for the future generations, as the pension landscape continues to evolve. Policymakers and individuals alike will need to address this issue to secure the financial well-being of future pensioners.