TUC reveals pension blackspots
10 Oct 2017 01:51 PM
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
|