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