The Institute of Fiscal Studies (IFS) launched a new review into pensions in the UK on Thursday (20 April).

Without Government intervention, the IFS says that future generations of pensioners could face "substantial financial difficulties" and poorer living standards in older age.

Among other findings, the pensions review showed that only one in five self-employed people are paying into a pension. This is "particularly concerning" considering the recent growth in self-employment figures.

Individuals with defined contribution pension pots also face more risk in managing their finances through retirement compared with those who have defined benefit pension pots.

Current life expectancy figures show that the average man will live for another 19 years after retiring at the state pension age of 66, while the average woman will live for another 21 years.

As a result, failing to provide for retirement could have "long-lasting effects" for individuals, with IFS director Paul Johnson adding that a fresh look at the UK saving environment is "long overdue".

Over the next few years, the pensions review will "assess the consequences of current pension policy" and produce evidence regarding the future of financial security in retirement.

The IFS will launch its final report, including specific policy recommendations, in 2025.

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