Workers hit by pension cuts...
While bosses rake in old-age bonanza
STINGY bosses have slashed the amount they put into workers’ pensions by more than two thirds in just three years.
Analysis by the Daily Mirror of official data on occupational pension scheme contributions reveals that employers paid an average 6.6% into employees’ savings in 2012.
But in 2015 that had dropped dramatically to just 2%, and continues at the same level now as bosses continue to fill their boots.
Our research with shareholder group Manifest earlier this year found the average FTSE 100 chief executive gets the equivalent of 30% of their salary as payment towards their pension every year.
Automatic enrolment into workplace pensions has meant millions more workers are now saving towards their financial future. But experts fear the introduction of the scheme has also allowed mean bosses to reduce the amount they chip in to the basic minimum requirement of 1% for employers.
TUC General Secretary Fraces O’Grady fumed: “While greedy bosses pump millions into their retirement pots, many are only paying the measly legal minimum into their workers’ pensions.
“Far too many people are already struggling on low pay.
“If bosses don’t contribute, a comfortable retirement will be an impossible dream for many workers.”
Experts are concerned many workers won’t have enough in their pension pots when they give up the nine to five grind. Investment firm Tilney says an average 30-year-old should be putting away between 12-15% of his or her earnings to ensure a comfortable retirement. Former Lib Dem Pensions Minister Steve Webb, now director of policy at Royal London, said: “Although millions more workers are now saving for a pension, it is worrying that the amounts going in are far too small. “The law will require these contributions to increase over the next few years. “But even by 2019, employers will only have to contribute 3%. “This is simply not enough for a decent retirement.”