THE government will resurrect the Pensions Commission to look at how to encourage groups that are undersaving and steer Britain away from a crisis exacerbated by an ageing population.

People looking to retire in 2050 are on course to receive £800 per year less than current pensioners, with 45 per cent of working-age adults putting nothing into their pensions, according to the Department for Work and Pensions (DWP).

Its analysis suggests that 15 million people are undersaving for retirement, with the self-employed, low paid and some ethnic minorities particularly affected.

Work and Pensions Secretary Liz Kendall has said that she is turning to the Pensions Commission, which last met in 2006, to “tackle the barriers that stop too many saving in the first place.”

TUC general secretary Paul Nowak said: “Far too many people won’t have enough pension for a decent retirement, and too many — especially women, BME (black and minority ethnic) and disabled workers and the self-employed — are shut out of the workplace pension system altogether.

“That’s why this Pensions Commission — which will bring together unions, employers and independent experts — is a vital step forward.”

Age UK’s Caroline Abrahams said the commission needed to address the state pension, which provides the bulk of retirement income for most pensioners.

She said: “If we’re to avoid future generations of pensioners experiencing financial hardship, we need reforms that enable more people to build a decent standard of living, and we need them sooner rather than later to maximise the numbers who can be helped.”