FOR IMMEDIATE RELEASE: 12 June 2019
Commenting in response to research from the Living Wage Foundation that over 5 million workers earn less than the real Living Wage and are in a form of insecure work, including 2 million parents, Troy Clutterbuck, CEO of NOW: Pensions, said: “It’s shocking to see that so many hard working people are still in insecure, low paid work. As well as affecting their immediate lives, this also has a significant impact on these workers’ futures.
“To some extent auto enrolment has reenergised pension saving in the UK, helping many lower earners start saving for later life. More than 87 percent of workers are now saving for their retirement – a staggering turnaround from the 57% before the measure was introduced in 2012.
“However, the £10,000 threshold which workers must earn in a single job to qualify for auto enrolment means about three million low paid, part time workers are missing out on receiving a private pension. A report from the Pensions Policy Institute reveals over three quarters of employees earning less than this trigger are women – who often take time out of the workforce to look after children or relatives meaning their pension savings receive a double hit.
“Even those who qualify for auto enrolment are being short changed due to the way contributions are calculated. The lower qualifying earnings threshold means employees don’t receive pension contributions on the first £6,136 of their earnings each year.
“The government must give auto enrolled savings a shot in the arm by removing the auto enrolment £10,000 trigger and qualifying earnings band to allow people to begin saving if we are to solve these inequalities now and in the future.”
Notes to editors
For further information:
Tel: 0203 948 9234
Tel: 0207 947 5327
NOW: Pensions www.nowpensions.com
NOW: Pensions entered the UK market in 2011 with a simple and cost-effective workplace pension designed specifically with the auto enrolment market in mind. It is one of the UK’s largest workplace pension providers with nearly two million members and more than 30,000 employers from a wide range of sectors.