Workers failing to enrol in pension schemes

Workers failing to enrol in pension schemes
Published:  5 Aug at 9 AM
Experts are warning that millions of employees in Britain could miss out on company pension schemes because they don’t qualify or have to opt in. The government has just announced that 1 million UK workers are now involved in auto-enrolment, a scheme introduced at the end of last year in an attempt to get more people saving for their retirement.

According to Hargreaves Lansdown financial adviser Laith Khalaf, auto-enrolment is not a silver bullet for tackling the pensions problem. He explained that because they do not earn enough, millions of part-time employees will overlooked by the system. He added that the same goes for the self-employed.

As it stands, to be automatically placed into a scheme, a worker has to earn more than £9,440. Employees also need to be between the age of 22 and state pension age. There is a concern that women could miss out because they make up around three-quarters of the part-time workforce.

Employees earning more than £5,668 have the option of entering themselves into a pension scheme, but the onus is on them to do so. Under auto-enrolment every £100 paid into a pension pot by a worker will be matched with £75 of employer contributions and £25 from the government.

It has been estimated that around 1.8 million part-time workers will have to take it upon themselves to make sure they are involved in a company pension scheme.