Auto-enrolment: workers with multiple jobs 'missing out on pensions'

Updated on 23 February 2017 | 0 Comments

More than 100,000 workers who have multiple jobs are missing out on auto-enrolment into a workplace pension.

A gap in the rules for auto-enrolment means that nearly 106,000 people are not getting the pensions they are entitled to, according to research by Citizens Advice.

Auto-enrolment means people in work should be opted into a workplace pension, which includes employer contributions to bulk up their savings pot.

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Why they are missing out on auto-enrolment

In order to qualify for auto-enrolment you need to earn more than £10,000 a year from a single job. The problem is thousands of workers do earn meet that minimum threshold, but from multiple jobs.

Research by Citizens Advice has revealed that there are a total of 250,000 people have several jobs paying under £10,000 a year – meaning they don’t qualify for auto-enrolment.

However, 40% of those people have a combined income of over £10,000 from their numerous jobs. They should be entitled to auto-enrolment in a workplace pension, except their earnings don’t come from one job.

The flaw with the rules is affecting women in particular, with 72,000 missing out.

“Too many people are shut out of a workplace pension – despite earning enough to qualify,” says Gillian Guy, chief executive of Citizens Advice.

“Many people – particularly women – work several part time jobs, which helps them manage commitments like childcare or study.

While in many cases they earn over £10,000, and pay tax on this combined income, they don’t have access to a workplace pension and miss out on the opportunity to save for their retirement.”

A review of auto-enrolment will be conducted by the Government this year, so Citizens Advice are calling for it to address how the scheme can be adapted to help people with multiple low-income jobs.

“The Government needs to seize the opportunity of this year’s auto-enrolment review and use it to pave the way for helping more people get on track with pension savings.”

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