Artificial intelligence, pension adequacy and the next labour market risk – Charlotte O'Leary

The Pensions Commission’s interim report is framed around a familiar concern: too many people are still not saving enough for retirement. The interim report's headline warns of about 15 million people undersaving into their pension, with low and middle earners, women and the self-employed particularly affected. However, beneath those immediate findings sits a deeper question the report only begins to touch upon: what happens to pension adequacy when the structure of work itself is changing?

Pensions policy is still based heavily on a labour market model that is becoming insecure, but automatic enrolment was designed for relatively stable employment, regular payroll deductions, and a clear relationship between employer and employee. It has succeeded on those terms. Yet, the interim report is right to stress the system must now adapt to modern working lives.