error
Subscriptions are not available for this site while you are logged into your current account.
close
Skip to main content
Submit RFP

      The Government has revived the Pensions Commission, originally known as the Turner Commission, which famously led to the introduction of auto-enrolment in 2012. This time, the stakes are just as high. With nearly half of working-age adults saving nothing into a pension, and future retirees projected to have 8% less private pension than today’s, the Commission has been tasked with rethinking the system from the ground up.

      For employers across the North West, this is more than just a policy update - it’s a chance to get ahead of the curve and rethink how we support long-term financial wellbeing and design more innovative reward packages.

      What’s likely to be on the table?

      While the Commission’s final report isn’t due until 2027, there are a few areas that seem ripe for reform:

      Urrffa Rafiq
      Urrffa Rafiq

      Director, Pensions

      KPMG in the UK

      • Lowering the auto-enrolment age to 18

        This could bring younger workers into pension schemes earlier. For employers with large apprentice or graduate populations, especially in cities like Manchester and Liverpool, this could mean rethinking cost models and onboarding processes.

      • Contributions from £1 of earnings

        Currently, contributions start from £6,240. Reducing this threshold could make pensions more inclusive, but also more expensive for employers. The recent push to consolidate small pension pots might help mitigate concerns about trivial savings.

      • Tackling the gender pension gap

        Employers may need to look at how parental leave and career breaks affect pension outcomes, and what support is offered when employees return.

      • Reaching underrepresented groups

        If opt-out rates are higher among certain demographics, it’s worth exploring why. Engaging with internal diversity networks could help shape more inclusive benefit designs.

      • Supporting the self-employed

        With the rise of gig work and freelance careers, especially in the North West’s creative and tech sectors, the Commission may explore new ways to encourage pension savings among non-traditional workers.

      • Revisiting the state pension

        Changes to eligibility, payment age, or value could reshape expectations around employer contributions and retirement planning.

      Why this matters for the North West

      The North West is undergoing a period of significant economic development, with devolution agendas unlocking new opportunities for regional investment, infrastructure, and innovation. As local authorities and enterprise partnerships push for inclusive growth, employers have a unique opportunity to align their workforce strategies, including pensions, with broader regional goals.

      With a diverse mix of industries, from advanced manufacturing to digital tech and professional services, the region is well-positioned to lead on progressive employment practices. Pension reform could be a catalyst for rethinking how we support long-term financial wellbeing and design more innovative reward packages better suited to meet the diverse needs of the evolving workforce.

      What can employers do now?

      Even though reforms may not land until after 2030, there are steps employers can take today:

      • Model the impact of potential changes

        What would it cost to lower the auto-enrolment age or start contributions from £1? It’s worth running the numbers now.

      • Review opt-out patterns

        Are certain teams or demographics opting out more than others? Understanding why could help tailor communications and support.

      • Support returners

        How are pension contributions handled for employees returning from parental leave? Could changes help close the gender pension gap?

      • Explore salary sacrifice options

        These can offer tax efficiencies and help employees maximise their pension contributions.

      • Budget speculation

        Watch carefully for the potential changes to pensions that have been speculated ahead of the Budget and, if announced, consider the impact on your workforce strategy, including pensions and wider reward.

      Need help navigating what’s next?

      At KPMG, we’ve been working with employers across the UK to understand the employment tax implications of pension schemes and build competitive, inclusive reward packages. If you’d like to explore how these potential reforms could affect your business, or just want to start planning ahead - we’re here to help.

      Our advisory insights

      Something went wrong

      Oops!! Something went wrong, please try again
      MTD TEST

      Get in touch

      Discover why organisations across the UK trust KPMG to make the difference and how we can help you to do the same.

      Contact us