Why Tomorrow’s Retirees May Struggle to Get By Without Property Investment

If you are working today and planning to retire around 2050, there is a warning you cannot afford to ignore. The future looks leaner than you might hope. According to the UK government, pensioners two decades from now will have significantly less income in retirement than today’s retirees unless urgent action is taken to boost savings.

The Department for Work and Pensions (DWP) is sounding the alarm and taking steps to address what it calls “stark” findings. It is reviving the Turner Pension Commission (first set up in 2002) to revisit how the country saves, who gets left out and what can be done to avoid a future where millions struggle to make ends meet in old age.

The Retirement Gap is Growing

The DWP's latest research paints a troubling picture. People retiring in 2050 are expected to be 8% worse off than those drawing pensions today. Nearly four in ten workers are not saving enough to retire comfortably. And nearly half of all working-age adults are not putting anything at all into a private pension.

The gaps are even wider when broken down by income, gender, employment type and ethnicity. More than three million self-employed workers are not saving into a pension. Among low earners in the private sector, only one in four is setting money aside.

The same ratio holds for people of Pakistani or Bangladeshi backgrounds. Women are also at a clear disadvantage. Today’s typical female pensioner receives about £100 per week from private pensions, compared to £200 for men. This is a 48% gender gap.

This is despite the rise of automatic enrolment into workplace pensions, introduced in 2012, which boosted participation among eligible employees from 55% to 88%. Yet auto-enrolment only goes so far. Many people, especially those in part-time, gig or freelance roles, continue to fall through the cracks.

What About the Triple Lock System

State pensions, which provide a basic income in retirement, are facing their own pressures. The government has pledged to keep the “triple lock,” a guarantee that pensions will rise by the highest of inflation, average wage growth or 2.5%. But with inflation and wages both soaring in recent years, the cost of this promise is ballooning. Projections show the price tag will be three times higher by 2030 than originally expected.

At the same time, the state pension age is set to rise. It currently stands at 66 and is already scheduled to reach 68 by 2046. A previous review suggested pushing this forward for people born in the late 1960s, but a final decision was delayed. Now, two new reviews have been commissioned, and by 2029, the government will need to decide whether to raise the retirement age.

How Did the Situation Get So Bad?

The reality is clear: future pensioners will need more than the state pension to get by. But building up private savings is not always a matter of choice. Many workers live paycheck to paycheck, with little to nothing left over to invest for the future. Self-employed individuals, who often lack access to employer-based schemes, are especially vulnerable.

Women who take time off work for childcare or work part-time are likely to miss out too. And ethnic minority workers, especially those in lower-paying or informal roles, face systemic barriers to financial security in retirement.

What Can Be Done?

The newly revived Commission is tasked with finding answers. It will bring together trade unions, employers and experts to examine what is holding people back from saving and how to fix it. The group will report in 2027.

Experts agree that simply tweaking the existing system will not be enough. An expert from a leading think tank said that around 17 million people are not saving enough to get the retirement they want. "The effects of the savings crisis will really start to bite over the next two decades," she warned.

Some voices are calling for bold moves. One advocate for pension reform stressed that the Commission must not shy away from “unpalatable recommendations,” including significant increases to minimum contributions after 2029. That could mean asking employers and workers to put more into pensions, even if it means smaller pay rises in the short term.

Another industry expert agrees that auto-enrolment rates should go up. He admits that higher pension contributions might squeeze wages. But if we do this gradually, over a decade or more, people will adjust.

Looking Beyond UK Pensions & Towards Property

Given the shaky outlook for future retirees, many experts say it is time to broaden the discussion. Relying solely on pensions may not cut it. Alternative forms of saving and investing like buying property, setting up long-term investment portfolios or even part-time work later in life may need to play a larger role.

Younger generations are already looking for more flexible and diversified ways to secure their future. Some are putting money into real estate or building digital assets. Others are focusing on upskilling so they can work into their 70s if needed.

But even those strategies are not available to everyone. Without targeted support and policy changes, the same groups who are struggling now — low earners, women, ethnic minorities, the self-employed —will continue to be left behind.

Conclusion: A National Wake-Up Call

The revival of the Pensions Commission is a signal that the government knows the system is falling short. But the real test will be whether it leads to meaningful change. More automatic enrolment alone will not fix the problem. The country needs a new retirement blueprint—one that is fair, future-proof, and rooted in the economic realities of today's workforce.

The cost of inaction is clear. Without reforms, future pensioners will not only be worse off than those today—they will face real hardship. Retirement, once seen as a time of rest and reward, could become a period of struggle for millions.

Now is the moment to act. Because building a decent retirement does not happen overnight. It happens slowly, steadily—and starting today.