The majority of workers in the UK agriculture and hospitality sectors are not saving into a workplace pension, as their salaries are below the auto-enrolment threshold of £10,000, research has shown.
According to FTAdviser’s sister newspaper Financial Times, the analysis, conducted by the Trades Union Congress (TUC), the umbrella body for unions representing 5.6 million workers, found that 908,000 of those working in hospitality, such as pubs, clubs and hotels, were not enrolled in a company retirement fund.
This figure is equivalent to 59 per cent of the sector’s workforce.
In the agriculture sector, 65 per cent of the workforce, or 93,000 people, were not in a workplace pension scheme.
In addition, about half a million construction workers, or half of the workforce, were not in a company scheme, with 48 per cent of arts, entertainment and recreation workers in the same position, according to the study.
Under the current rules, only workers aged between 22 and the state pension age, which earn more than £10,000 in a single job will be auto-enrolled into a pension.
The government is currently reviewing auto-enrolment, with a report expected to be publish before the end of the year.
One of the main topics of this review is the inclusion of the self-employed workers, and the eligibility criteria to access auto-enrolment.
According to Frances O’Grady, the TUC’s general secretary, “auto-enrolment has been a great success”, but “it’s not a case of ‘job done’”.
She said: “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.”
According to the latest figures from the Department for Work and Pensions (DWP), more than 8.5m more people have been saving into a workplace pension scheme due to auto-enrolment, which was launched by the government in 2012.
maria.espadinha@ft.com
