The UK government has "revived" the Pensions Commission as part of its work to explore the barriers stopping people from saving enough for retirement, with the commission set to share its final report in 2027.

The commission will look into why tomorrow’s pensioners are on track to be poorer than today’s, examining the pension system as a whole and looking at what is required to build a future-proof pensions system that is strong, fair and sustainable.

Announcing the plans, the government said that the 2006 commission was a "huge success", building a consensus for the roll-out of automatic enrolment into pension saving that means 88 per cent of eligible employees are now saving, up from 55 per cent in 2012.

However, it admitted that there is more to do, with new analysis suggesting that the incomes of retirees are set to fall over the next few decades if nothing changes.

According to the Department for Work and Pensions' (DWP) data, retirees in 2050 are on course for £800 or 8 per cent less private pension income than those retiring today, while four in 10, or nearly 15 million people, are undersaving for retirement.

The government's analysis suggested that this partly reflects too many working-age adults (45 per cent) saving nothing at all into a pension, with lower earners, the self-employed and some ethnic minorities particularly at risk.

Indeed, the latest figures showed that over three million self-employed are not saving into a pension, while only 1-in-4 low earners in the private sector are saving into a pension, and just 1-in-4 of those from a Pakistani or Bangladeshi background are saving.

The DWP also shared new analysis revealing a "stark " gender pensions gap in private pension wealth of 48 per cent, meaning that the typical woman currently approaching retirement can expect a private pension income worth over £5,000 less than that of a typical man (just over £100 per week for a woman compared to just over £200 a week for a man).

The revived commission will therefore look to address these findings, making proposals for change beyond the current parliament to deliver a pensions framework that is strong, fair and sustainable. Its final report is due in 2027.

The Pensions Commission will be made up of Baroness Jeannie Drake (a member of the original Commission), Sir Ian Cheshire and Professor Nick Pearce, who will be responsible for steering its work.

Drawing on the success of the original Pensions Commission in building a national consensus, the government said that the commission will also work closely with stakeholders, such as the Confederation of British Industry and the Trade Union Congress.

Alongside the commission, the government has, as required by law, launched the state pension age review, commissioning two independent reports for the government to consider when deciding the state pension age for future decades.

In particular, Dr Suzy Morrissey will report on factors the government should consider relating to state pension age, while the Government Actuary’s Department will prepare a report on the proportion of adult life in retirement.

Commenting on the news, Chancellor, Rachel Reeves, stated: "We’re making pensions work for Britain.

"The Pension Schemes Bill and the creation of pension megafunds mean an average earner could get a £29,000 boost to their pension pots. Now we are going further to ensure that people can look forward to a comfortable retirement.”

Adding to this, Pensions Minister, Torsten Bell, said: “The original Pensions Commission helped get pension saving up and pensioner poverty down.

"But if we carry on as we are, tomorrow’s retirees risk being poorer than today’s. So we are reviving the Pensions Commission to finish the job and give today’s workers secure retirements to look forward to.”

Bell had previously seemed to rule out the idea of a long-term savings commission as a way of building consensus, suggesting that those who think this is the best approach are "living in la la land" given shifts in the political landscape in Britain.

This article was first published on our sister website, Pensions Age.

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