A million UK hospitality staff face retirement poverty: TUC
Nearly one million hospitality staff in the UK face poverty in retirement, according to an analysis of the government’s pensions auto-enrolment system by the Trades Union Congress (TUC). The scheme, launched five years ago, was designed to boost retirement savings. However, the TUC claims that up to six in 10 workers in low-paid sectors, including agriculture and retail, are not enrolled in a pension scheme. Such workers earn less than £10,000, the minimum level at which employers are required to establish a savings plan. The TUC claims that almost nine million UK workers cannot afford to save for a pension.
The TUC has today (Monday) revealed the UK’s pension blackspots.

The analysis shows that in some industries, like hospitality and agriculture, six in ten workers are not enrolled in a pension.

The TUC says many are missing out on a decent retirement because they earn less than £10,000 – the level of earnings at which employers must enrol someone into a workplace pension.

Despite the success of pension auto-enrolment, nearly 9 million UK workers are still unable to save into a pension scheme.

The five industries with the lowest level of pension cover are:

Agriculture, forestry and fishing – 65% of employees (93,000) do not have a pension.

65% of employees (93,000) do not have a pension. Hospitality – 60% of employees (908,000) do not have a pension.

60% of employees (908,000) do not have a pension. Other services (hairdressing and beauty) – 56% of employees (270,000) do not have a pension.

56% of employees (270,000) do not have a pension. Construction – 50% (493,000) of employees do not have a pension.

50% (493,000) of employees do not have a pension. Arts and entertainment – 48% of employees (253,000) do not have a pension.

The TUC also found evidence of a “pension lottery” among those saving into a workplace pension.

In low-paid sectors, like wholesale and retail, nine out of ten savers received contributions worth less than 8% of salary from their employer.

By contrast, in industries like financial services (where there are more high earners), the vast majority of savers received more than 8% in contributions from their bosses.

TUC General Secretary Frances O’Grady said:

“Auto-enrolment has been a great success. But it’s not a case of ‘job done’.

“Millions remain at risk of poverty in retirement because they are saving nothing, or very little, into a pension scheme.

“We urgently need the government to help more low-paid workers join schemes. And ministers must set out a plan for increasing contributions from employers.”

ENDS