Andy Burnham private pension change on table with 4% cut in take home pay for workers

NewsCost Of LivingAndy BurnhamThe Second Pensions Commission is evaluating09:21, 13 Aug 2026A pension system shake-up under the Labour Party government and new Prime Minister Andy Burnham could see millions of workers hit with a four per cent pay cut, it has been warned. The Second Pensions Commission is evaluating the UK automatic enrolment system because an estimated 15 million working-age people are undersaving for retirement.‌Current rules require a total minimum contribution of 8% (3% from employers) on earnings between £6,240 and £50,270, but experts warn this may cause a drop in living standards later in life.‌Research from the Institute for Fiscal Studies (IFS) looked at what could happen if these rules were changed to get workers saving more. One scenario would increase minimum pe