Today Now Pensions published a new report revealing almost nine million people in the UK are suffering with pension poverty.
Money. A subject area that frequently finds itself at the heart of most concerns. A new report from Now Pensions demonstrates this trend may not be changing any time soon.
The research, which was published in partnership with the Pensions Policy Institute, revealed underpensioned groups had annual private pension incomes ranging from £3,650 to £6,750 compared to a population average of £8,500.
Those most at risk include people with disabilities, women, divorced women, carers, people from ethnic monitory backgrounds, single mothers, self-employed and multiple job holders.
‘While progress has been made in bringing more people into pension saving, significant inequalities remain,’ Samatha Gould, author of the report said. ‘Many underpensioned groups continue to face systemic barriers that limit their ability to save for later life.’
‘These individuals are more likely to earn lower wages, work part-time, or take time out of employment for caring responsibilities, all of which contribute to lower pension savings and greater financial insecurity in retirement,’ she continued.
On the topic of trying to enforce improvements, the data shows auto-enrolment – automatically enrolling individuals aged over 22 who earn more than £10,000 into workplace pension schemes – has brought over 11 million additional people into a workplace scheme. What’s more, women’s eligibility for auto-enrolment has increased by 6% narrowing the gap between men and women’s eligibility.
However, experts likewise found many underpensioned people do not meet the criteria for such programmes.
Against this backdrop, Now Pensions is proposing five policy reforms to bridge the gap. These include axing the £10,000 auto-enrolment earnings triggers, scrapping the lower earnings limit on pension contributions and introducing a family carer’s top-up.
‘Without further policy action, millions will continue to struggle to Schieve a secure retirement,’ Joanne Segars, chair of trustees at Now Pension added. ‘That’s why we’re suggesting key reforms…These measures would help ensure that everyone, regardless of their working patterns or circumstances, has a fairer opportunity to build a financially secure future.’
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