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Scotsman
13-06-2025
- General
- Scotsman
Who cares for the carers? Shocking pension gap leaves millions behind
As Scotland marks Carers Week, a stark new report reveals just how much unpaid carers are being left behind when it comes to saving for retirement — raising urgent calls for reform to close the growing pension gap. Sign up to our daily newsletter – Regular news stories and round-ups from around Scotland direct to your inbox Sign up Thank you for signing up! Did you know with a Digital Subscription to The Scotsman, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues. Please try again later. Submitting... According to the 2025 Underpensioned Report, published by workplace pension provider now:pensions in collaboration with the Pensions Policy Institute (PPI), carers are retiring with less than half the private pension income of the average UK worker. The report highlights that the average private pension income for carers is now just 49% of the national average — down from 55% in 2020. This widening gap paints a bleak picture for the financial future of millions providing unpaid care. Advertisement Hide Ad Advertisement Hide Ad Carers More Likely to Miss Out The 2021 Census recorded 5.8 million unpaid carers in the UK One of the core issues is employment. Carers are significantly less likely to be in paid work — just 61% are employed, compared to 76% of the general workforce. For female carers, the disparity is even more pronounced: 38% work part-time, compared to just 29% of working women overall. Lower earnings and part-time roles mean many carers miss the threshold for automatic enrolment into a workplace pension. While 10.8% of the general workforce fall below the £10,000 earnings trigger for auto-enrolment, 13% of carers — and nearly 15% of women carers — are excluded. The figures are even starker for those in receipt of Carer's Allowance. According to Labour Force Survey data, only a quarter of these carers are eligible for auto-enrolment, leaving three in four with no access to workplace pension savings at all. Pay Gap Adds to Inequality The average income for carers stands at £35,248, below the national average of £38,740. But when broken down by gender, the gap widens: male carers earn £46,681 on average, while female carers take home just £28,176. Advertisement Hide Ad Advertisement Hide Ad Samantha Gould, Head of PR and Campaigns at now:pensions and author of the report, said the numbers are a wake-up call: 'Carers provide essential support that many depend on every day, yet they remain systemically disadvantaged in their ability to save for later life. We urgently need pension reform that acknowledges and supports the vital unpaid work that carers do to help provide greater financial security in retirement.' A Call for Reform To tackle the disparity, now:pensions is calling for a series of policy reforms, including: A family carer's top-up, ensuring pension contributions continue during periods of unpaid care. Removal of the £10,000 earnings threshold for automatic pension enrolment. Scrapping the lower earnings limit, so that every pound earned counts towards pension savings. Carers UK: 'Time to Act' Helen Walker, Chief Executive of Carers UK, described the findings as deeply concerning: "we know from our work with unpaid carers that they often work below their potential, take less senior roles or move into lower-paid jobs. Working part-time or leaving work completely can be catastrophic for their finances in the short term — and even worse for their pensions in the long run." Walker urged employers to adopt carer-friendly policies, such as flexible working, paid carer's leave, and better support systems to help carers remain in the workforce: 'with longer working lives and an ageing population, supporting unpaid carers in the workplace is becoming ever more important. Carers Week is the perfect moment to show that we care about equality.' Advertisement Hide Ad Advertisement Hide Ad Millions at Risk The 2021 Census recorded 5.8 million unpaid carers in the UK, with 1.7 million providing more than 50 hours of care each week. While some progress has been made in employment rates since 2022, the pensions gap continues to grow — threatening the future financial security of a vital but too often invisible workforce. As calls grow louder for pension reform, one message is clear: carers need more than gratitude — they need policy changes that value their unpaid work and safeguard their futures.
South Wales Argus
05-06-2025
- Business
- South Wales Argus
New pension changes for 20m people in Pension Schemes Bill
The Government's new Pension Schemes Bill is designed to support working people plan for their retirement by making pensions simpler to understand, easier to manage, and drive better value over the long term. Keeping track of pensions is notoriously challenging, with the average worker accumulating 11 different pension pots over their lifetime. This has resulted in £26.6 billion in lost pensions across the UK, according to the Pensions Policy Institute and the Association of British Insurers. One of its biggest benefits is the merging of small pension pots. The bill also introduces a new system to show how well pension schemes are performing, this will help savers understand whether their scheme is giving them good value and protect them from getting stuck in underperforming schemes for years on end, to help working people feel more secure about their retirement savings. For those approaching retirement, the changes will mean clear default options for turning savings into a retirement income. This means people will have clearer, more secure routes to decide how they use their pension money over time. The full changes are listed in detail here. Work and Pensions Secretary Liz Kendall says: "Hardworking people across the UK deserve their pensions to work as hard for them as they have worked to save, and our reforms will deliver a huge boost to future generations of pensioners." Chancellor of the Exchequer Rachel Reeves describes the bill as "a game changer", giving "bigger pension pots for savers and driving £50 billion of investment directly into the UK economy– putting more money into people's pockets." Government launches plans to automatically combine small pension pots, here's what it's likely to mean for you... — Martin Lewis (@MartinSLewis) April 24, 2025 What do these pension changes mean for workers? The bill will transform the £2 trillion pensions landscape to ensure savers get good returns for each pound they save, and drive investment into the economy, through a suite of measures, including: Requiring DC schemes to prove they are value for money, to protect savers from getting stuck in underperforming schemes. Simplifying retirement choices, with all pension schemes offering default routes to an income in retirement. Bringing together small pension pots worth £1,000 or less into one pension scheme that is certified as delivering good value to savers, making pension saving less hassle and more rewarding. New rules creating multi-employer DC scheme 'megafunds' of at least £25 billion, so that bigger and better pension schemes can drive down costs and invest in a wider range of assets. Consolidating and professionalising the Local Government Pension Scheme (LGPS), with assets held in six pools that can invest in local areas infrastructure, housing and clean energy. Increased flexibility for Defined Benefit (DB) pension schemes to safely release surplus worth collectively £160 billion, to support employers' investment plans and to benefit scheme members. What is the difference between a Defined Benefit (DB) scheme and a Defined Contribution (DC) pension? There are two different ways pension schemes work. With a Defined Benefit (DB) pension scheme, also referred to as final salary pension schemes, the amount you get is usually based on your salary and how long you've been part of the pension scheme. For a Defined Contribution (DC) pension, the figure you get is based on how much you and your employer invest in the pension and how your investments perform. Recommended reading: What's the expert view on the new pension changes? Nausicaa Delfas, chief executive of The Pensions Regulator (TPR) says: "The Pension Schemes Bill is a once in a generation opportunity to address unfinished business in the UK pension system. "Making sure all schemes are focused on delivering value for money, helping to stop small, and often forgotten pension pots forming, and guiding savers towards the right retirement products for them, will mean savers benefit from a system fit for the future. "We have long advocated for fewer, larger well-run schemes with the size and skill to deliver better outcomes for savers. As such we are also pleased to see the proposed legislative framework for DB superfunds, providing options and choice in defined benefit consolidation." Andy Briggs, CEO, Phoenix Group says: "The bill sets a clear direction for the future of pensions with the emphasis on building scale and ensuring savers receive value for money. "People across the country will feel the impact of these changes with plans to consolidate small pots, ensure the dashboard delivers and provide default retirement income options at the point of retirement. Patrick Heath-Lay, Chief Executive, People's Partnership adds: "This is a pivotal moment in pension reform. The bill contains many measures that will require providers to deliver better outcomes for savers and improve the workplace pension system."
Powys County Times
05-06-2025
- Business
- Powys County Times
New pension changes for 20m people in Pension Schemes Bill
Pension changes introduced today could make managing accounts easier for millions of workers planning their retirement across the UK. The Government's new Pension Schemes Bill is designed to support working people plan for their retirement by making pensions simpler to understand, easier to manage, and drive better value over the long term. Keeping track of pensions is notoriously challenging, with the average worker accumulating 11 different pension pots over their lifetime. This has resulted in £26.6 billion in lost pensions across the UK, according to the Pensions Policy Institute and the Association of British Insurers. One of its biggest benefits is the merging of small pension pots. The bill also introduces a new system to show how well pension schemes are performing, this will help savers understand whether their scheme is giving them good value and protect them from getting stuck in underperforming schemes for years on end, to help working people feel more secure about their retirement savings. For those approaching retirement, the changes will mean clear default options for turning savings into a retirement income. This means people will have clearer, more secure routes to decide how they use their pension money over time. The full changes are listed in detail here. Work and Pensions Secretary Liz Kendall says: "Hardworking people across the UK deserve their pensions to work as hard for them as they have worked to save, and our reforms will deliver a huge boost to future generations of pensioners." Chancellor of the Exchequer Rachel Reeves describes the bill as "a game changer", giving "bigger pension pots for savers and driving £50 billion of investment directly into the UK economy– putting more money into people's pockets." Government launches plans to automatically combine small pension pots, here's what it's likely to mean for you... — Martin Lewis (@MartinSLewis) April 24, 2025 What do these pension changes mean for workers? The bill will transform the £2 trillion pensions landscape to ensure savers get good returns for each pound they save, and drive investment into the economy, through a suite of measures, including: Requiring DC schemes to prove they are value for money, to protect savers from getting stuck in underperforming schemes. Simplifying retirement choices, with all pension schemes offering default routes to an income in retirement. Bringing together small pension pots worth £1,000 or less into one pension scheme that is certified as delivering good value to savers, making pension saving less hassle and more rewarding. New rules creating multi-employer DC scheme 'megafunds' of at least £25 billion, so that bigger and better pension schemes can drive down costs and invest in a wider range of assets. Consolidating and professionalising the Local Government Pension Scheme (LGPS), with assets held in six pools that can invest in local areas infrastructure, housing and clean energy. Increased flexibility for Defined Benefit (DB) pension schemes to safely release surplus worth collectively £160 billion, to support employers' investment plans and to benefit scheme members. What is the difference between a Defined Benefit (DB) scheme and a Defined Contribution (DC) pension? There are two different ways pension schemes work. With a Defined Benefit (DB) pension scheme, also referred to as final salary pension schemes, the amount you get is usually based on your salary and how long you've been part of the pension scheme. For a Defined Contribution (DC) pension, the figure you get is based on how much you and your employer invest in the pension and how your investments perform. Recommended reading: What's the expert view on the new pension changes? Nausicaa Delfas, chief executive of The Pensions Regulator (TPR) says: "The Pension Schemes Bill is a once in a generation opportunity to address unfinished business in the UK pension system. "Making sure all schemes are focused on delivering value for money, helping to stop small, and often forgotten pension pots forming, and guiding savers towards the right retirement products for them, will mean savers benefit from a system fit for the future. "We have long advocated for fewer, larger well-run schemes with the size and skill to deliver better outcomes for savers. As such we are also pleased to see the proposed legislative framework for DB superfunds, providing options and choice in defined benefit consolidation." Andy Briggs, CEO, Phoenix Group says: "The bill sets a clear direction for the future of pensions with the emphasis on building scale and ensuring savers receive value for money. "People across the country will feel the impact of these changes with plans to consolidate small pots, ensure the dashboard delivers and provide default retirement income options at the point of retirement. Patrick Heath-Lay, Chief Executive, People's Partnership adds: "This is a pivotal moment in pension reform. The bill contains many measures that will require providers to deliver better outcomes for savers and improve the workplace pension system."
Daily Mirror
27-05-2025
- Business
- Daily Mirror
Millions of Brits urged to check for £9,400 in lost savings - steps to take now
The PPI defines a pension as "lost" when the provider is unable to contact the saver who owns it. The recent spike in the number of lost pots has been blamed on workplace pension auto-enrolment Millions of Brits could be in with a chance of a £9,400 boost if they have one of the millions of "lost" savings pots in the UK. According to a study by the Pensions Policy Institute (PPI) charity, there are around 3.3million pension pots in the UK which are considered "lost". Collectively, these pots are believed to be worth around £31billion. This is up from £26.6billion in 2022 across 2.8 million accounts and is an increase of 60%, or nearly £12billion, since 2018. These lost pensions are now worth an average of £9,470, rising to £13,620 among those ages between 55 and 75. The PPI defines a pension as "lost" when the provider is unable to contact the saver who owns it. The recent spike in the number of lost pots has been blamed on workplace pension auto-enrolment. As workplaces enrol all workers over the age of 22 into a workplace pension, those who move jobs frequently could end up with multiple pots they may not fully be aware of. Although this has been an issue for the last few decades, now that every employer needs to offer one, it is expected to push up these figures even higher. PensionBee warns that a "national crisis" could be ahead as the total number of UK pension pots is expected to rise 130% from 106million to 243 million by 2050. Chris Blackwood, spokesperson for the Pension Attention campaign, said: 'If you can do one thing today, use the pension tracing tools to find any lost pension pots. It only takes a few clicks, and you could substantially add to your pot.' You can track down lost pension pots yourself for free by contacting ex-employers and digging out old paperwork. The Government also has a free Pension Tracing Service tool. This service allows you to enter an employer's name to find the contact details of the pension provider they use. The helpline will then provide contact details so you can get in touch. Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, highlighted the urgency of tracking down a lost pot sooner rather than later, as the money could have a 'major impact' on your retirement planning. Join Money Saving Club's specialist topics For all you savvy savers and bargain hunters out there, there's a golden opportunity to stretch your pounds further. The Money Saving Club newsletter, a favourite among thousands who thrive on catching the best deals, is stepping up its game. Simply follow the link and select one or more of the following topics to get all the latest deals and advice on: Travel; Property; Pets, family and home; Personal finance; Shopping and discounts; Utilities. She noted that even the smallest pensions can grow over time, and that the pension you paid into a decade or more ago could well have grown a 'decent amount.' For example, a £10,000 pension pot would be worth more than £16,400 after 10 years if it grew at 5% per year. She said: 'This could play an important role in your retirement income. With 21% of people admitting to having lost track of a pension and a further 18% being unsure if they have, it's a major issue. The good news is that you can do something about it.'
Yahoo
04-03-2025
- Business
- Yahoo
How Gen X can still save for a decent retirement
An interesting piece of research landed in my inbox last week which said that only 28% of Generation X think they will save enough to give themselves a decent retirement. This is far lower than younger generations such as Generation Z – 50% of whom think they are on track – and Millennials, at 47%. So why do Gen Xers view their retirement prospects so poorly? For many of them they believe they've fallen between the gap of being too young to have benefitted from final salary pensions and yet too old to really take advantage of having been auto-enrolled in a pension throughout their career. The timing may well be challenging, but it's important not to panic. There are several things you can do to improve your pension saving. Read more: How to get tax relief on your pension contributions The first thing you need to do is make sure you haven't lost track of any pensions from previous jobs. It's easily done but it could blow a huge hole in your retirement planning. Research from the Pensions Policy Institute estimates there are well over 3 million lost pensions in the system – that's a lot of money that could be used to bolster people's retirement planning. Take some time to make a list of everywhere you have worked. If you think you may have had a pension with any of these employers, but don't have any paperwork, then contact the government's Pension Tracing Service and they will be able to help you find contact details. You could find a pot worth thousands of pounds that could seriously perk up your retirement prospects. It's also well worth making use of some of the great online tools out there such as pension calculators. They can tell you how much you are on track to have in retirement, and you can even model the impact of increasing your contributions on how much you end up with. You might get a nice surprise and realise you are better prepared than you first thought. Even if you've got some catching up to do you've got time to put a plan in place to try and close the gap. Read more: How to plan for a comfortable retirement as we live longer Money may be very tight right now and you may feel like you don't have the extra to spare to put into your pension. This is especially the case if you have a mortgage to pay and children to feed. However, if you do get a pay increase, or even a new job then this can be a great opportunity to boost your contributions. You won't be used to having the extra money in your budget and so allocating a portion of it to your pension can prove a bit less painful. It's also worth seeing what your employer can offer you. Many of them contribute at auto-enrolment minimum levels but some employers are willing to do more if you boost your contribution – the so-called employer match. If this is the case, it can be a great way of boosting your overall contribution without necessarily having to put much more in yourself. Read more: How to fix gaps in your state pension contributions How to improve your pension income Five top tips if you retire in 2025Sign in to access your portfolio
