UK workers forgo over £5bn a year by failing to join company pension schemes; while a quarter of workers believe they are denied one, according to Prudential.
Research found, the 18% of full-time and part-time workers who have not joined their company’s occupational pension scheme surrender £5.07bn of pension perks annually.
Based on the UK average salary for full and part time staff of £19,494.80 a year, it means employees are foregoing an extra £2,208 a year on top of the salaries.
While all companies are legally obliged to provide a stakeholder pension scheme as a minimum part of staff employment packages, the research found, more than one in four UK working adults believe their employer does not offer a pension scheme. The figure rose to 37% for 18 to 24 year olds.
However, it also revealed two thirds of full-time and part-time workers know their employers offer a company pension as part of their remuneration package. Those polled say employers will contribute an average of 11.33% of earnings to their schemes.
Prudential is calling for all employers and employees to ensure pension benefit entitlements are being met.
Martyn Bogira, defined contributions director at Prudential, says: “Missing out today on these benefits will play havoc with peoples' retirement plans in the future.”
He believes it is critical UK adults ensure they are building an adequate retirement savings pot to ensure a financially secure future.
According to Bogira, two steps are needed to avoid losing out. "Firstly, employees should check with their employer to find out what occupational scheme is available to them.
"Secondly, we would encourage people to visit an IFA to ensure all their savings and assets, together with the benefits offered to them as part of their employment packages, are working for them to enable them to build the retirement fund they need to achieve their goals."
Prudential has launched a simple retirement planning website designed to help consumers and employers tackle retirement issues. It is available at: www.pru.co.uk/retireyourway.IFAonline
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