Data on workers not paying into pensions shows the arts sector is particularly affected.
The TUC has undertaken research on the UK’s pension blackspots.
The analysis shows that in some industries, like hospitality and agriculture, six in ten workers are not enrolled in a pension and the main reason is because they earn less than £10,000 – the level of earnings at which employers must enrol someone into a workplace pension.
The analysis shows:
- nearly 9 million UK workers are still unable to save into a pension scheme,
- five industries at the lowest level of pension cover are: agriculture, forestry and fishing (65% of employees do not have a pension), hospitality (60%), hairdressing and beauty (56%), construction (50% ) and arts and entertainment (48% of employees do not have a pension),
- evidence of a “pension lottery” among those saving into a workplace pension For low-paid sectors, like wholesale and retail, nine out of ten savers received contributions worth less than 8% of salary from their employer, but in industries like financial services (where there are more high earners), the vast majority of savers received more than 8% in contributions from their bosses.
TUC General Secretary Frances O’Grady 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. And ministers must set out a plan for increasing contributions from employers.”