Workers juggling multiple jobs 'slipping through workplace pensions net'

Many of the hardest-working people, juggling multiple jobs to make ends meet, are "slipping through the net" when it comes to the landmark scheme to encourage workplace pension saving, according to a report.

Nearly two million people juggling multiple jobs are potentially missing out on workplace pension contributions due to their income being split across more than one employer, according to calculations by Scottish Widows.

It found that around 1.8 million "multi-jobbers" across the UK have at least one job paying less than £10,000.

This unfairly impacts multi-jobbers, who could be working the equivalent of full-time hours, yet without the financial benefit of having a single employer."

The earnings trigger at which employees must be automatically placed into workplace pensions by an employer is £10,000.

Scottish Widows said that while workers earning £6,032 and above can potentially opt in, many are not doing so.

It estimates that collectively over £90 million of employer contributions a year could be claimed if the auto-enrolment minimum threshold was scrapped.

Automatic enrolment into workplace pensions was introduced in 2012 to tackle fears that many people were not putting aside enough money for their retirement.

Government figures show over 9.6 million workers have been automatically enrolled and over 1.2 million employers have met their automatic enrolment duties so far.

Scottish Widows claimed the current minimum earnings threshold puts an "unfair barrier" in the way of low-paid workers and their ability to prepare adequately for retirement.

Its calculations were based on a survey of more than 5,100 people and Office for National Statistics (ONS) labour market figures.

Robert Cochran, a retirement expert at Scottish Widows, said: "This year's study shows some of the hardest working and most financially vulnerable members of society are slipping through the auto-enrolment net because of minimum earnings thresholds.

"This unfairly impacts multi-jobbers, who could be working the equivalent of full-time hours, yet without the financial benefit of having a single employer."

The report also found two-fifths (39%) of UK workers aged 22 to 29 years old are now saving adequately for retirement, up from 30% last year.

They were defined as saving adequately if they were saving at least 12% of their income.

Despite the improvement, more than one in five young adults (21%) are still saving nothing for later life, according to the findings.

Overall, more than half (55%) of UK workers were deemed as saving adequately for retirement - a proportion which has fallen slightly for the first time since 2013. Over the past few years the figure has stood at 56%, Scottish Widows said.

The Government has been reviewing various ways to build on the initial success of automatic enrolment.

A Department for Work and Pensions (DWP) spokesman said: "Automatic enrolment has helped more than 9.6 million people enrol into a workplace pension, and our review set out the ambition to build on its success.

"By removing the lower earnings limit - making every pound pensionable - we will increase contributions and incentives for lower earners and people with multiple jobs to opt in, benefiting from an employer contribution and tax relief."