Chancellor Rachel Reeves is expected to unveil a comprehensive review of the UK’s auto-enrolment pension system as early as next week, marking a significant step in the Labour government’s broader effort to reform retirement savings.

Sources close to the matter indicate that the review will be a central feature of Reeves’ upcoming Mansion House speech, where she will outline her financial services strategy to leaders in the City of London. The speech, set for Tuesday evening, is anticipated to introduce a series of economic measures designed to strengthen long-term financial security and boost retirement preparedness.

The Department for Work and Pensions will lead the review, which is expected to examine the current contribution levels under the auto-enrolment scheme—currently set at 8% of earnings, split between 5% from employees and 3% from employers. The inquiry will assess whether this baseline is sufficient and consider gradually increasing contributions to as much as 12%, a figure long advocated by pension industry experts.

Originally introduced in 2012, the auto-enrolment scheme was designed to ensure that workers across all sectors were automatically enrolled in a pension plan, with employer contributions helping to bolster their retirement savings. While the policy has succeeded in increasing the number of workers saving for retirement, growing concerns remain that current contribution levels are too low to provide an adequate income in later life.

The review had previously been shelved due to concerns over the financial strain on businesses—particularly following increases in employer national insurance contributions. However, with long-term fiscal sustainability now a pressing issue, the government appears ready to revisit the matter.

A recent warning from the Office for Budget Responsibility (OBR) highlighted the risk of insufficient private pension savings, warning that many individuals may fall short of an “adequate” retirement income. The OBR cautioned that this shortfall could increase dependence on the state pension and means-tested benefits, creating fiscal pressures in the years ahead.

Though no formal decision has been made regarding new contribution levels, the review is expected to be launched before Parliament breaks for summer recess on 22 July.

In a statement, a government spokesperson emphasized that while the review’s outcome cannot be pre-judged, the goal is clear: “We’re reforming the pensions market to drive economic growth, ensure greater security in retirement, and put more money in people’s pockets.”

The spokesperson also pointed to upcoming legislation intended to improve pension fund performance and reiterated the government’s support for the state pension triple lock, which will see an increase of £1,900 for millions of retirees.

As the government prepares to reshape retirement planning in the UK, Reeves’ initiative could mark a turning point in ensuring that today’s workers can retire with financial dignity and independence.