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Smaller Company Employees Miss Out on Pension Saving

Do you work for a micro-companies of less than four employees? You are more likely to miss out on pension auto-enrolment

Emma Wall 28 October, 2016 | 2:13PM

 

 

 

Emma Wall: Auto-enrolment was introduced four years ago with the aim of eradicating pension poverty, through the introduction of workplace retirement saving schemes for all. Auto-enrolment was started in October 2012 with some of the largest companies in the U.K. And now, now that we've reached 2016 and within two years of the scheme finishing we're down to those employers with between one and four workers.

If you have a look at what it takes to be auto-enrolled, you have to earn at least £10,000. Nationwide only 14% of people earn less than £10,000 but when you look at the people who are working at these micro employers this jumps to 42%. This means potentially 42% of people working at very small companies could miss out on a pension scheme.

However if you earn more than £5,824 you can request to be enrolled into a workplace savings scheme, where of course that will be topped up by your employer, and indeed the government, helping you become one of those people who won't be in poverty at your pension time. 

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About Author Emma Wall

Emma Wall  is Senior Editor for Morningstar.co.uk