Pension: Covid forces lowest earners to miss out on £122million in employer contributions | Personal Finance | Finance
The report, which has been tracking the nation’s attitudes towards saving for retirement since 2005, found 31 percent of low income earners, defined as those earning £10-£20,000 per year, have experienced a financial decline because of the pandemic, and 23 percent now expect to have to “work until they drop.”
As a result of job and income losses, Scottish Widows estimated low earners will have missed out on a combined £122million in pension contributions from their employers during COVID-19, a figure that almost triples to £325million if including personal contributions.
In light of these findings, Scottish Widows is calling for “urgent reforms” what would entitle those on low incomes to continue to receive contributions from their employer, if they are unable to meet the costs of employee contributions during a period of financial hardship.
Pete Glancy, the Head of Policy at Scottish Widows, commented on this.
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