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TUC reveals pension blackspots

Six in ten workers in hospitality and agriculture not paying into a pension

The TUC yesterday (Monday) revealed the UK’s pension blackspots.

The analysis shows that in some industries, like hospitality and agriculture, six in ten workers are not enrolled in a pension.

The TUC says many are missing out on a decent retirement because they earn less than £10,000 – the level of earnings at which employers must enrol someone into a workplace pension.

Despite the success of pension auto-enrolment, nearly 9 million UK workers are still unable to save into a pension scheme.

The five industries with the lowest level of pension cover are:

  • Agriculture, forestry and fishing – 65% of employees (93,000) do not have a pension.
  • Hospitality – 60% of employees (908,000) do not have a pension.
  • Other services (hairdressing and beauty) – 56% of employees (270,000) do not have a pension.
  • Construction – 50% (493,000) of employees do not have a pension.
  • Arts and entertainment – 48% of employees (253,000) do not have a pension.

The TUC also found evidence of a “pension lottery” among those saving into a workplace pension.

In low-paid sectors, like wholesale and retail, nine out of ten savers received contributions worth less than 8% of salary from their employer.

By contrast, in industries like financial services (where there are more high earners), the vast majority of savers received more than 8% in contributions from their bosses.

TUC General Secretary Frances O’Grady said:

“Auto-enrolment has been a great success. But it’s not a case of ‘job done’.

“Millions remain at risk of poverty in retirement because they are saving nothing, or very little, into a pension scheme.

“We urgently need the government to help more low-paid workers join schemes. And ministers must set out a plan for increasing contributions from employers.”

Notes to editors:

  • The five industries with the lowest pension provision

Industry

Number of workforce without pension

% of workforce without pension

Agriculture, forestry and fishing

93,000

65.4

Accommodation and food service activities

908,000

59.5

Other service activities

270,000

55.7

Construction

493,000

50.5

Arts, entertainment and recreation

253,000

48.2

 

Original article link: https://www.tuc.org.uk/news/tuc-reveals-pension-blackspots

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