Pension warning for employees hit by Covid crisis as they face missing out on thousands

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With the end of the furlough scheme due to come into effect at the end of September, wealth management firm Quilter is urging people who opted out of making pension contributions to opt-in should they return to full-time employment.

The Coronavirus Job Retention Scheme saw people who were furloughed receive 80 percent of salary, up to a maximum of £2,500 per month, with specific rules relating to pension contributions. The level of support for employer contributions has varied since the scheme was introduced, but employees had to make their pension contributions from the pay they received.

However, the onset of the pandemic saw people either reduce their pension contributions, either voluntarily or because of reduced pay, or opt out altogether. Official figures from the Office for National Statistics showed a fall of 11 percent in employee contributions between the first and second quarters of 2020.

Meanwhile, Nest, the pension scheme set up by the Government to help facilitate auto-enrolment, saw opt-outs reach 11 percent during the pandemic, up from eight percent earlier in 2020.

READ MORE: Universal Credit claimants will get £67 extra each month after certain age – can you?



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