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23 Sep 2015

A third of women will miss out on workplace pensions

A new piece of research has found that nearly a third of working women in the UK (30%) will miss out on new legislation that should have guaranteed them a pension, AOL News reports.

According to the study conducted by the Pensions Policy Institute for Age UK, nearly twice the amount of women than men (16%) will not qualify for auto-enrolment, meaning that they will miss out on receiving a workplace pension.

The fundamental reason for this is that many women don´t earn enough to qualify, making less than £10,000 per annum. And that´s not just because they are often paid less than their male counterparts, but because their caring responsibilities mean they are more likely to work part-time hours, be self-employed, or spend more time out of work to raise their children.

In light of this, less than a third feel confident that they´ll be able to retire when they choose; and just 5% were on track for their desired retirement.

Age UK´s charity director, Caroline Abrahams, is now calling on the government to lower the threshold for auto-enrolment so that more people are able to benefit from it.

Angela Seymour-Jackson, managing director of Workplace at Aegon UK, agrees, highlighting the “very specific challenges” woman face when it comes to getting financially prepared for retirement.

“Despite the Government implementing significant changes in the past year to empower people, we are still just at the starting point,” she stated. “We need to shift the focus to those who aren´t saving and address specific needs, such as those of women.”

Women weren´t the only demographic found to be missing out; according to the report, the large majority (81%) of workers currently in receipt of Carer´s Allowance will not qualify for auto-enrolment, nor will 30% of disabled workers.

What´s more, nearly half (45%) of those in the service industries will not qualify, and ethnic minority groups – particularly Pakistani and Bangladeshi workers – are also less likely to meet the necessary criteria.

Copyright M2 Bespoke 2015

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