A recent article in Law360, a prominent digital platform for legal reporting and insight, covers the fact that Britain is facing a deepening pension crisis as millions of workers risk retiring in poverty. Rising withdrawals from pension pots, falling contributions, and a growing reliance on inadequate state provision have all prompted warnings that future generations will be worse off in retirement than previous ones.

Commenting in the article, senior partner Anna Rogers explained that “not working was for the rich or the infirm, and I think we could go back to that. If you’re rich enough to have lots of savings, whether it’s in a pension or some other vehicle, then you’ll be able to stop work at a certain age.” She continued that “if that’s not the case, people will work until they’re ill and they can’t work anymore. It’s a big problem.”

On the growing risk of poverty in later life, Anna noted: “We’re going to see a generation retire in poverty unless the government can either nudge or compel people to save more. And that’s the crisis, because what will it lead to? Will it lead to reintroducing the workhouse? What happens if the state pension doesn’t keep pace with what we consider to be an acceptable standard in a civilised society of dignity in retirement for old people?”

Anna highlighted the challenge for policymakers, namely that Britain needs to systemically change the way in which it saves for later life, stating that “if you want to get the whole population out of poverty, you’ve got to have a combination of people saving more and people paying more tax.”

Law 360 subscribers can read the article here.