The UK’s pension system is still failing to serve swathes of the workforce – and urgent action is needed to ensure that people are saving adequately for retirement.
That’s the message from PensionBee, a leader in the consumer retirement market, as the Pension Schemes Bill 2024-25 received its second reading in Parliament.
Despite more than a decade of progress under automatic enrollment, too many workers are still slipping through the safety net.
Those shut out of saving for retirement – including those in part-time jobs, in lower-paid roles, and the growing population of gig economy workers - are often those most in need.
PensionBee is warning that whilst the Bill includes long-promised reforms, it doesn’t go far enough to reflect the realities of today’s labour market or deliver pension equality, and to address overall pension adequacy.
Lisa Picardo, Chief Business Officer UK at PensionBee, said: “Whilst the second reading of the Pension Schemes Bill 2024–25 is a further step forward, more ambition is needed to ensure automatic enrolment works universally, for everyone in today’s workforce.
“Lowering the age of enrolment to 18 and removing the earnings threshold altogether would help to close long-standing gender and income gaps in retirement savings.
“Millions of workers - particularly younger, part-time and lower-paid individuals - remain excluded from the current system, and even those who are enrolled often save too little to meet the rising cost of retirement.
“Through our Invisible Workers campaign, we’ve also called for urgent reform to bring gig economy workers into the scope of auto enrolment. These workers contribute significantly to the economy and represent a growing population, yet are too often overlooked by outdated legislation.
“The Government now has a golden opportunity to deliver a fairer, more inclusive and adequate pension system that reflects the realities of modern working life.”
