NOW: Pensions today comments on the Fawcett Society’s Equal Pay Day

Amy Mankelow, Director of Communications at NOW: Pensions, comments on the Fawcett Society’s Equal Pay Day:

“The gender pay gap not only impacts the quality of women’s lives day to day but has profound consequences for their future. Less money going into women’s pay packets each month, also means less being paid into their pensions. Not only that, but a disproportionate number of women are excluded from workplace pension saving altogether as they don’t earn enough to be auto enrolled.

“A report NOW: Pensions commissioned from the Pensions Policy Institute shows that over three quarters (77%) of employees earning less than the £10,000pa auto enrolment trigger are women and are excluded from auto enrolment. Over 50% of part-time workers earn less than the auto enrolment trigger and 81% of part-time workers are women so miss out on workplace pension saving.

“The other sleight of hand in auto enrolment is that not all earnings are included in the auto enrolment calculation for pension contributions. The legislation specifies that only earnings between £5,876pa and £45,000pa have to be included.

“This disadvantages all workers but particularly part time and the low paid. For example, somebody earning £10,000pa will not benefit from the headline 8% contribution but in fact only 3.4%, because over half the earnings are excluded. The position improves at higher earnings levels, but even somebody earning £40,000pa will receive just 6.9%, not the headline 8%.

“Of those that are saving into a workplace pension*, nearly half (49%) of women are using auto enrolment as their only form of saving for retirement, and expect just £102,000 in their pension pot compared to £184,000 for men.

“With the State Pension slipping further from reach it is vital that auto enrolment works equally for both women and men and removing the auto enrolment trigger and earnings bands is imperative to ensure that this discrimination does not become embedded in our pension system.”

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 *Research conducted by Opinium from 8 – 12 September 2017 with 2,007 UK employees aged 22 to 66.

For further information:

Amy Mankelow / Cheriton Lee

NOW: Pensions

Tel: 07887 604640 / 0203 948 9236

amy.mankelow@nowpensions.com / cheriton.lee@nowpensions.com

 

Irene Kyme

NOW: Pensions

Tel: 0207 343 1600

irene.kyme@cicero-group.com

 

NOW: Pensions www.nowpensions.com @nowpensions

NOW: Pensions is one of the UK’s largest workplace pension providers with over a million members and tens of thousands of employers from a wide range of sectors. A subsidiary of one of Europe’s largest pension funds, Danish pension scheme ATP, 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.

NOW: Pensions' risk management and diversified growth fund are state of the art. — Win Robbins, former Head of European Fixed Income Barclays Global Investors
I am excited to be joining such a distinguished Board of Trustees, over-seeing a modern, transparent, cost efficient and high-performing pension fund. — Win Robbins, former Head of European Fixed Income Barclays Global Investors
There is a need for a member-centric solution designed for ease of use with low costs and cutting edge investment strategy, which delivers long term stable returns. ATP's in-house investment capabilities, combined with our novel and innovative… — Lars Rohde, Governor of the National Bank of Denmark and Former CEO of ATP Group
NOW: Pensions is supportive, easy for our employees to understand and uncomplicated in terms of its implementation. Its structured approach removes the complicated investment choices & makes auto-enrolment a straightforward and simple process. — Mark Manaton, Managing Director, Blue Arrow Group
“We were impressed with the simplicity of its scheme. The ease of implementation was also a big plus for us and has removed much of the administrative headache.” — Neil Tune, HR director at Fitness First