More than 100,000 British workers are not earning enough to qualify for auto enrolment pensions.
Workers in the U.K. qualify for auto enrolment pensions once they achieve earnings of £10,000 from a single job. It is the fact that multiple sources are needed to reach this trigger point that prevents many from benefiting from the law.
Citizens Advice found that almost 106,000 people fell into the category of earning too little from a single employer. The charity came to this conclusion after analysing figures from the Office of National Statistics’ Labour Force Survey.
Women Disproportionately Affected
72,000 of those affected are women. The reasons given for this include the idea that women disproportionately have to find jobs that fit around family commitments. Chief executive at Citizens Advice, Gillian Guy states that “many people – particularly women – work several part-time jobs, which helps them manage commitments like childcare or study.”
Auto enrolment into pension schemes began in 2012 in order to prevent a looming crisis of private under funding of old age expenses and on the whole are viewed as successful. Around 90% of those eligible have decided not to opt out meaning by 2018, 10 million people are projected to be saving in to a pension fund directly because of the measure.
Multiple job holders and the self-employed have not been provided for as of yet. The Government is aware of this and have announced a review of the scheme which will look into any perceived shortcomings.
Ms Guy calls on the Government to “seize the opportunity of this year’s auto-enrolment review and use it to pave the way for helping more people get on track with pension savings.”
Citizens Advice have also recently surveyed managers finding that of the over 1,100 questioned, only 18% cited auto enrolment responsibilities as a key concern going forward. Far more, 44% are most worried about hiring the right staff and 36% about retaining them.
Paul Hoskin MD at Hoskin Financial
THIS BLOG PROVIDES INFORMATION, IT IS NOT ADVICE. ANY OPINIONS ARE GIVEN IN GOOD FAITH AND MAY BE SUBJECT TO CHANGE WITHOUT NOTICE. OPINIONS AND INFORMATION INCLUDED WITHIN THIS EMAIL DO NOT CONSTITUTE ADVICE. (IF YOU REQUIRE PERSONAL ADVICE BASED ON YOUR CIRCUMSTANCES, PLEASE CONTACT US AT HOSKIN FINANCIAL
Workers in the U.K. qualify for auto enrolment pensions once they achieve earnings of £10,000 from a single job. It is the fact that multiple sources are needed to reach this trigger point that prevents many from benefiting from the law.
Citizens Advice found that almost 106,000 people fell into the category of earning too little from a single employer. The charity came to this conclusion after analysing figures from the Office of National Statistics’ Labour Force Survey.
Women Disproportionately Affected
72,000 of those affected are women. The reasons given for this include the idea that women disproportionately have to find jobs that fit around family commitments. Chief executive at Citizens Advice, Gillian Guy states that “many people – particularly women – work several part-time jobs, which helps them manage commitments like childcare or study.”
Auto enrolment into pension schemes began in 2012 in order to prevent a looming crisis of private under funding of old age expenses and on the whole are viewed as successful. Around 90% of those eligible have decided not to opt out meaning by 2018, 10 million people are projected to be saving in to a pension fund directly because of the measure.
Multiple job holders and the self-employed have not been provided for as of yet. The Government is aware of this and have announced a review of the scheme which will look into any perceived shortcomings.
Ms Guy calls on the Government to “seize the opportunity of this year’s auto-enrolment review and use it to pave the way for helping more people get on track with pension savings.”
Citizens Advice have also recently surveyed managers finding that of the over 1,100 questioned, only 18% cited auto enrolment responsibilities as a key concern going forward. Far more, 44% are most worried about hiring the right staff and 36% about retaining them.
Paul Hoskin MD at Hoskin Financial
THIS BLOG PROVIDES INFORMATION, IT IS NOT ADVICE. ANY OPINIONS ARE GIVEN IN GOOD FAITH AND MAY BE SUBJECT TO CHANGE WITHOUT NOTICE. OPINIONS AND INFORMATION INCLUDED WITHIN THIS EMAIL DO NOT CONSTITUTE ADVICE. (IF YOU REQUIRE PERSONAL ADVICE BASED ON YOUR CIRCUMSTANCES, PLEASE CONTACT US AT HOSKIN FINANCIAL
No comments:
Post a Comment