The Government is reviving the Pensions Commission to look at ways to tackle the problem of people not saving for their retirement.

It will be led by Baroness Jeannie Drake, a member of the previous Commission, and will report in 2027.

The Commission last met in 2006 and recommended automatic enrolment in workplace pensions.

The introduction of auto-enrolment has seen the number of eligible employees saving climb from 55% in 2012 to 88%.

The Department for Work and Pensions said 45% of working-age adults were putting nothing into their pensions. Its analysis suggested 15m people were undersaving for retirement, with the self-employed, low paid and some ethnic minorities particularly affected.

Around three million self-employed people are said to be saving nothing for their retirement, while only a quarter of people on low pay in the private sector and the same proportion from Pakistani or Bangladeshi backgrounds are saving.

Women face a significant gender pensions gap, with those approaching retirement in line to receive barely half the income that men can expect.

Torsten Bell, Pensions Minister, said: “The original Pensions Commission helped get pension saving up and pensioner poverty down. But if we carry on as we are, tomorrow’s retirees risk being poorer than today’s.

“So we are reviving the Pensions Commission to finish the job and give today’s workers secure retirements to look forward to.”

The news has been widely welcomed across the industry.

Ian Cornelius, CEO of Nest, said: “More change is needed. Automatic enrolment has started to improve outcomes, but if we are going to build a pensions system which can truly support low- and moderate-income (LMI)  workers it must be tailored to their needs.

“The system must strike a balance between ensuring that working people have sufficient income in retirement and supporting their day-to-day financial resilience before retirement.”

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said: “The last Commission is credited with getting Britain saving into a pension through auto-enrolment – the bar has been set high and there is a lot to do.

“At the top of the agenda will sit issues such as whether auto-enrolment contributions need to rise - as well as how to get groups such as the self-employed to save more for retirement. These will prove tricky to tackle so the Commission has its work cut out.”

Catherine Foot, director of the Standard Life Centre for the Future of Retirement, said: “The launch of a new Pensions Commission represents a critical opportunity to address how we tackle the looming savings crisis head on.

“There’s an opportunity to examine how different elements of the system are working together and to set out a roadmap that can secure the buy-in of employers, as well as savers themselves over the long-term.”

Kate Smith, head of pensions at Aegon, said: “To really move the pension dial, we are calling for the new Pension Commission to make bold, brave and possibly unpalatable recommendations to the Government, such as implementing significant increases to auto-enrolment contributions during the next parliament for those on mid and higher incomes.”

The Pensions Commission will be made up of Baroness Jeannie Drake, a member of the original Commission, Sir Ian Cheshire and Professor Nick Pearce, who will be responsible for steering its work. Drawing on the success of the original Pension Commission in building a national consensus, they will work closely with stakeholders such as the Confederation of British Industry and the Trades Union Congress.

 Liz Kendall, Work and Pensions Secretary, said: "The Pensions Commission laid the groundwork, and now, two decades later, we are reviving it to tackle the barriers that stop too many saving in the first place."