More People Are Leaving Workplace Pension Schemes Warns The Tuc Pension Industry

With real wages falling and bills rising sharply, people across the country are looking for ways to cut spending and supplement their incomes, and the TUC said it was hearing of staff in both the public and private sectors who they had concluded that they could not afford to save for retirement at this time. “Based on what our unions are telling us, anecdotally they’re saying a lot of people are having to leave the programs,” a union spokesman said. “That’s the public sector and the private sector … It’s something we hear a lot from public sector unions.” Her warnings follow figures published in August showing that the number of people opting out of their company pension scheme rose by almost a third between March and July this year. The figures were published by Penfold, a digital pensions platform used by private savers, the self-employed, company directors and businesses. Around 10% of people quit their work scheme and the TUC said Penfold’s findings – which would translate into a two to three percentage point increase in opt-out rates, to around 12%-13% – appeared broadly she listened to me consistently. The reports have already led to calls for the government and the pensions industry to work together to find a solution to avoid a pension shortfall. Investment advisers say workers considering leaving their plan should think very carefully before jumping ship. Someone who chooses to resign effectively forgoes pension contributions from their employer, which essentially amounts to a “voluntary pay cut,” said Tom Selby, head of pensions policy at investment firm AJ Bell. “Furthermore, you will lose the upfront boost provided by pension tax relief,” he added. Tisa (the Investment and Savings Alliance), a membership organization for UK financial firms, said: “In times like these, a reduction or opt-out of pension contributions is not surprising and is easy and understandable to forget in the long run.” Renny Biggins, head of pensions at Tisa, said possible solutions he proposed included increasing the amount employers had to pay into the UK’s auto-enrolment workplace pension scheme from 3% of earnings to 6 %, in order to allow staff to cut their contributions and free up some money to supplement their disposable income. Alternatively, employers could choose to continue paying pension contributions by allowing their employees to take a temporary contribution leave. Subscribe to Business Today Get ready for the business day – we’ll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. “We recognize that there are immediate needs for people to look after their families, but we are still concerned that if people decide to reduce or opt out of their pension now, there will be consequences in the future,” Biggins said. Jack Jones, pensions policy officer at the TUC, said: “Our long-term policy objective is to increase employer contributions.” The National Employment Savings Trust (Nest), a public pension scheme set up by the government, which now has 11.2 million members, said the opt-out rate for new entrants has remained largely stable throughout the pandemic and currently it was 10.2%. Nest said it had seen a very small increase in the number of members becoming inactive, which included people who had chosen to stop paying, but that it could not say whether this was due to increases in the cost of living.

title: “More People Are Leaving Workplace Pension Schemes Warns The Tuc Pension Industry Klmat” ShowToc: true date: “2022-11-23” author: “Janice Clemmons”

With real wages falling and bills rising sharply, people across the country are looking for ways to cut spending and supplement their incomes, and the TUC said it was hearing of staff in both the public and private sectors who they had concluded that they could not afford to save for retirement at this time. “Based on what our unions are telling us, anecdotally they’re saying a lot of people are having to leave the programs,” a union spokesman said. “That’s the public sector and the private sector … It’s something we hear a lot from public sector unions.” Her warnings follow figures published in August showing that the number of people opting out of their company pension scheme rose by almost a third between March and July this year. The figures were published by Penfold, a digital pensions platform used by private savers, the self-employed, company directors and businesses. Around 10% of people quit their work scheme and the TUC said Penfold’s findings – which would translate into a two to three percentage point increase in opt-out rates, to around 12%-13% – appeared broadly she listened to me consistently. The reports have already led to calls for the government and the pensions industry to work together to find a solution to avoid a pension shortfall. Investment advisers say workers considering leaving their plan should think very carefully before jumping ship. Someone who chooses to resign effectively forgoes pension contributions from their employer, which essentially amounts to a “voluntary pay cut,” said Tom Selby, head of pensions policy at investment firm AJ Bell. “Furthermore, you will lose the upfront boost provided by pension tax relief,” he added. Tisa (the Investment and Savings Alliance), a membership organization for UK financial firms, said: “In times like these, a reduction or opt-out of pension contributions is not surprising and is easy and understandable to forget in the long run.” Renny Biggins, head of pensions at Tisa, said possible solutions he proposed included increasing the amount employers had to pay into the UK’s auto-enrolment workplace pension scheme from 3% of earnings to 6 %, in order to allow staff to cut their contributions and free up some money to supplement their disposable income. Alternatively, employers could choose to continue paying pension contributions by allowing their employees to take a temporary contribution leave. Subscribe to Business Today Get ready for the business day – we’ll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. “We recognize that there are immediate needs for people to look after their families, but we are still concerned that if people decide to reduce or opt out of their pension now, there will be consequences in the future,” Biggins said. Jack Jones, pensions policy officer at the TUC, said: “Our long-term policy objective is to increase employer contributions.” The National Employment Savings Trust (Nest), a public pension scheme set up by the government, which now has 11.2 million members, said the opt-out rate for new entrants has remained largely stable throughout the pandemic and currently it was 10.2%. Nest said it had seen a very small increase in the number of members becoming inactive, which included people who had chosen to stop paying, but that it could not say whether this was due to increases in the cost of living.

title: “More People Are Leaving Workplace Pension Schemes Warns The Tuc Pension Industry Klmat” ShowToc: true date: “2022-11-25” author: “Kelly Stanfield”

With real wages falling and bills rising sharply, people across the country are looking for ways to cut spending and supplement their incomes, and the TUC said it was hearing of staff in both the public and private sectors who they had concluded that they could not afford to save for retirement at this time. “Based on what our unions are telling us, anecdotally they’re saying a lot of people are having to leave the programs,” a union spokesman said. “That’s the public sector and the private sector … It’s something we hear a lot from public sector unions.” Her warnings follow figures published in August showing that the number of people opting out of their company pension scheme rose by almost a third between March and July this year. The figures were published by Penfold, a digital pensions platform used by private savers, the self-employed, company directors and businesses. Around 10% of people quit their work scheme and the TUC said Penfold’s findings – which would translate into a two to three percentage point increase in opt-out rates, to around 12%-13% – appeared broadly she listened to me consistently. The reports have already led to calls for the government and the pensions industry to work together to find a solution to avoid a pension shortfall. Investment advisers say workers considering leaving their plan should think very carefully before jumping ship. Someone who chooses to resign effectively forgoes pension contributions from their employer, which essentially amounts to a “voluntary pay cut,” said Tom Selby, head of pensions policy at investment firm AJ Bell. “Furthermore, you will lose the upfront boost provided by pension tax relief,” he added. Tisa (the Investment and Savings Alliance), a membership organization for UK financial firms, said: “In times like these, a reduction or opt-out of pension contributions is not surprising and is easy and understandable to forget in the long run.” Renny Biggins, head of pensions at Tisa, said possible solutions he proposed included increasing the amount employers had to pay into the UK’s auto-enrolment workplace pension scheme from 3% of earnings to 6 %, in order to allow staff to cut their contributions and free up some money to supplement their disposable income. Alternatively, employers could choose to continue paying pension contributions by allowing their employees to take a temporary contribution leave. Subscribe to Business Today Get ready for the business day – we’ll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. “We recognize that there are immediate needs for people to look after their families, but we are still concerned that if people decide to reduce or opt out of their pension now, there will be consequences in the future,” Biggins said. Jack Jones, pensions policy officer at the TUC, said: “Our long-term policy objective is to increase employer contributions.” The National Employment Savings Trust (Nest), a public pension scheme set up by the government, which now has 11.2 million members, said the opt-out rate for new entrants has remained largely stable throughout the pandemic and currently it was 10.2%. Nest said it had seen a very small increase in the number of members becoming inactive, which included people who had chosen to stop paying, but that it could not say whether this was due to increases in the cost of living.

title: “More People Are Leaving Workplace Pension Schemes Warns The Tuc Pension Industry Klmat” ShowToc: true date: “2022-11-17” author: “Christina Mckennon”

With real wages falling and bills rising sharply, people across the country are looking for ways to cut spending and supplement their incomes, and the TUC said it was hearing of staff in both the public and private sectors who they had concluded that they could not afford to save for retirement at this time. “Based on what our unions are telling us, anecdotally they’re saying a lot of people are having to leave the programs,” a union spokesman said. “That’s the public sector and the private sector … It’s something we hear a lot from public sector unions.” Her warnings follow figures published in August showing that the number of people opting out of their company pension scheme rose by almost a third between March and July this year. The figures were published by Penfold, a digital pensions platform used by private savers, the self-employed, company directors and businesses. Around 10% of people quit their work scheme and the TUC said Penfold’s findings – which would translate into a two to three percentage point increase in opt-out rates, to around 12%-13% – appeared broadly she listened to me consistently. The reports have already led to calls for the government and the pensions industry to work together to find a solution to avoid a pension shortfall. Investment advisers say workers considering leaving their plan should think very carefully before jumping ship. Someone who chooses to resign effectively forgoes pension contributions from their employer, which essentially amounts to a “voluntary pay cut,” said Tom Selby, head of pensions policy at investment firm AJ Bell. “Furthermore, you will lose the upfront boost provided by pension tax relief,” he added. Tisa (the Investment and Savings Alliance), a membership organization for UK financial firms, said: “In times like these, a reduction or opt-out of pension contributions is not surprising and is easy and understandable to forget in the long run.” Renny Biggins, head of pensions at Tisa, said possible solutions he proposed included increasing the amount employers had to pay into the UK’s auto-enrolment workplace pension scheme from 3% of earnings to 6 %, in order to allow staff to cut their contributions and free up some money to supplement their disposable income. Alternatively, employers could choose to continue paying pension contributions by allowing their employees to take a temporary contribution leave. Subscribe to Business Today Get ready for the business day – we’ll point you to all the business news and analysis you need every morning Privacy Notice: Newsletters may contain information about charities, online advertising and content sponsored by external parties. For more information, see our Privacy Policy. We use Google reCaptcha to protect our website and Google’s Privacy Policy and Terms of Service apply. “We recognize that there are immediate needs for people to look after their families, but we are still concerned that if people decide to reduce or opt out of their pension now, there will be consequences in the future,” Biggins said. Jack Jones, pensions policy officer at the TUC, said: “Our long-term policy objective is to increase employer contributions.” The National Employment Savings Trust (Nest), a public pension scheme set up by the government, which now has 11.2 million members, said the opt-out rate for new entrants has remained largely stable throughout the pandemic and currently it was 10.2%. Nest said it had seen a very small increase in the number of members becoming inactive, which included people who had chosen to stop paying, but that it could not say whether this was due to increases in the cost of living.