Prudential reveal that UK workers are missing out on £5.07
billion a year
Released
on: December 10, 2008, 4:58 am
Press Release Author: Lucy Dellow
Industry:
Financial
Press
Release Summary: Prudential has revealed that UK workers are missing
out on £5.07 billion a year by failing to join company pension
schemes
Press
Release Body: Prudential, the UK based financial
services company, has announced the results of recently conducted
independent research which reveals that UK workers are missing
out on £5.07 billion a year by failing to join company pension
schemes.
The
findings from Prudential show that 66% of UK
workers (full time and part time) knew their employers offered
a company pension as part of their remuneration package. Those
polled also said that employers will pay an average of 11.33%
of earnings to their schemes.
Yet
despite this, 18% of these workers are failing to join the occupational
pensions on offer which, based on the average annual UK salary
of £19,494.80 for full and part time staff, means they are
turning down an extra £2,208 a year on top of their salaries.
The 18% of workers who have not joined their occupational pension
schemes are therefore surrendering over £5 billion of
pension perks every year.
Additionally,
the research found that more than one in four (26%) of UK working
adults believe that their employer does not offer a pension
scheme as part of their employment package, with this number
rising to 37% among 18-24 year olds. This is despite all companies
being legally obliged to provide a stakeholder pension scheme
as a minimum part of staff employment packages.
On
the back of these findings, Prudential is calling
for employers and their staff to work together and ensure that
they take the pension benefits they are entitled to.
Martyn
Bogira, Defined Contributions Director for Prudential,
said: "Britons are taking voluntary cuts of over £5
billion per annum in their employee benefits by failing to join
a company
pension scheme. Missing out today on these benefits will play
havoc with peoples' retirement plans in the future. But it's a
problem with an easy solution. We would strongly encourage all
staff to check the terms of their company pension and ensure they
understand how much additional money they are losing out on by
failing to join these.
"It
is critical that UK adults ensure they are building an adequate
retirement savings pot if they are to enjoy a financially secure
future and avoid having to work past traditional retirement ages
or having to significantly reduce their standard of living in
retirement.
"Two
steps are all that's needed to stop losing out. Firstly, employees
should check with their employer to find out what occupational
scheme is available to them. Secondly, we would encourage people
to visit an IFA (Independent Financial Advisor) to ensure all
their savings and assets, together with the benefits offered to
them as part of the their employment packages, are working for
them to enable them to build the retirement fund they need to
achieve their goals."
Prudential
has launched an easy to use retirement planning website to help
consumers and employers tackle retirement
issues.
About
Prudential:
Established in 1848, Prudential plc is an international financial
services company with a product range which extends from personal
banking, insurance, pensions and retail investments, to institutional
fund management and property investments.
In
the UK Prudential is a leading life and pensions provider with
around seven million customers.
Web
Site: http://www.pru.co.uk/
Contact
Details: For further Prudential media enquiries, contact:
Lucy Dellow
PR Executive
Prudential
3 Sheldon Square
London
W2 6PR
0207 150 2252
2012
