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Part-time workers penalised

Nathan Long | 10 November 2016 | A A A

You’re about to read press releases, which we’ve written for media use only. They’re not intended for individual investors. They’re not personal advice and don’t include any recommendations.

No recommendation

You’re about to read press releases, which we’ve written for media use only. They’re not intended for individual investors. They’re not personal advice and don’t include any recommendations.

Media contact:

Danny Cox

Head of Communications

Direct Line: 0117 317 1638

Mobile: 07989672071

The latest declaration of compliance report produced by the Pension Regulator is a timely reminder of the shortcomings of auto-enrolment as we head towards 2017 and its inaugural review.

  • Of employers to have adopted auto-enrolment, 6,155,000 workers remain on the sidelines
  • This equates to more than 1 in 4 workers
  • In the main, those earning under £10,000 per annum – effectively those working part-time - are missing out
  • 265,000 staff have been swept back into pensions as part of their employer’s 3 year re-enrolment, representing just 2% of total workers

Nathan Long - Senior Pension Analyst at Hargreaves Lansdown:

"A sizeable chunk of employer workforces are being frozen out of saving for retirement and that is before we even begin to address the issues afflicting the self-employed.

In the main, part-time employees are missing out which tends to discriminate against women who are more likely to take these roles. The demands of modern living mean the flexibility of both self-employment and part-time roles will continue to grow in popularity. Failure to incorporate these groups into pension saving could spell disaster for an otherwise successful policy.

Priorities for the Government’s 2017 auto-enrolment review should be to lower the level of earnings at which employees are put into a pension and to include the self-employed in automatically saving for retirement. A reduction in the level of earnings needed to be auto-enrolled to that of the New State Pension would be sensible."

NOTES TO EDITORS

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Hargreaves Lansdown is equipped with a live in-house broadcast camera via the Globelynx network and has an ISDN line available for radio interviews - 0117 934 9006. To arrange an interview with a Hargreaves Lansdown spokesperson please contact the person you wish to speak to directly using the contact details above, or call Globelynx on 0207 963 7060 or email globelynx@globelynx.com.


You’re about to read press releases, which we’ve written for media use only. They’re not intended for individual investors. They’re not personal advice and don’t include any recommendations.