Calls for AE reform with low earners losing £122m

Scottish Widows calls for urgent reforms

Hope William-Smith
clock • 1 min read

Low-paid pension savers under increased pressure from the Covid-19 pandemic should be able to opt out of auto-enrolment (AE) and still receive employer contributions, Scottish Widows says.

The latest Scottish Widows Retirement Report - published on 7 July - found workers earning between £10,000 and £20,000 per annum who lost income during the pandemic had missed out on around £122m in pension savings from employers. This figure almost triples to £325m if including personal contributions. Almost a third (31%) of those in that earnings bracket (31%) reported a decline in their finances during the pandemic, with one in five (18%) experiencing a drop in income and over half (54%) now concerned about running out of money in their later years. Scottish Widows said "urgent"...

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