UK workers ‘missing out on over £5bn’

Many UK workers are risking financial problems and debt later on in life by failing to sign up for company pension schemes, new research has revealed.

Findings from Prudential suggest that although 66 per cent of UK employees were aware of pension packages offered by their employer, 18 per cent failed to sign up.

This 18 per cent is resulting in over £5 billion in pension perks being lost every year, with staff earning the average wage of approximately £19,500 per annum losing out on an extra £2,208, possibly increasing their chances of needing debt help as they get older.

And the results are less favourable among young people, with 37 per cent in the 18-24 age group being unaware of their employers’ pension plan.

Those who already hold a pension have been advised to think carefully before making a decision to reduce their contributions by Adrian Lowocks of Bestinvest.

By Tom Musk