A Pension Bee call out earlier this year

I am not against Pension Commissions but I do think we can get on with using what we have more effectively without the 18 month waiting till we are promised the Pension Commission comes up with its conclusions.

There is no reason why there cannot be progress in making pension saving available to people who do not use savings and no reason for us to ignore a new range of pension saving products.

I read a startling report published at the end of July. The Department for Work and Pensions that morning published annual statistics on workplace pension participation and savings trends: 2009 to 2024.

The statistics showed that rates of participation in Auto Enrolment have remained stable in recent years, along with stopping savings levels and contribution levels.

Nine-in-ten eligible employees, 21.7 million people, are saving into a workplace scheme, according to the DWP, while eight-in-ten of all employees are saving into a scheme, or 23.3 million workers.

The freezing of the earnings trigger for Auto Enrolment, at £10,000, contributed to a greater than usual increase in participation, as increased earnings brought more workers into scope.

However, although there was a good uptick in pension saving among workers who are not eligible for Auto Enrolment, from 28 per cent in 2023 to 33 per cent in 2024, pension savings rates remain low, at less than 40 per cent, highlighting the urgent need for policies to bring lower income, self-employed and gig economy workers, into pension saving.

Participation rates among employees of ‘micro’ employers with less than five members of staff are also far lower, at 59%.

The DWP also identified a lower than average proportion of Pakistani and Bangladeshi workers paying into workplace schemes, at 68%. Then I read this from Pension Bee and think of what we can do now and what a Pension Commission can call for – in 18 months.

More than a million UK ‘gig’ workers cannot afford to save into a pension, according to new research.

The latest data from PensionBee, a leader in the consumer retirement market, reveals that over half of temporary economy workers in the UK (57%) can’t afford to save into a pension, prompting urgent calls for a ‘universal pension’ system that would ensure every worker, regardless of income level, employment status or hours worked, has automatic access to a pension.

The findings marked the launch of PensionBee’s Invisible Worker campaign on National Freelancers Day, which aims to shine a spotlight on the millions of non-traditional workers, from freelancers and unpaid carers to those on zero-hours contracts, who are falling through the cracks of the UK pension system as a result of not being auto-enrolled.

The nationally representative survey of 1,000 UK adults who either aren’t paying into, or don’t know if they’re paying into a pension, found that affordability is the main barrier across all types of non-traditional work.

Sixty percent of self-employed and freelance workers who aren’t paying into a pension cited affordability as the key reason, followed closely by unpaid carers (57%) and those on zero-hours contracts (46%).

Beyond cost, a significant proportion of workers in the gig economy simply don’t know how to begin saving into a pension. Nearly one in three (29%) say they wouldn’t know where to start or they find pensions too complicated, a figure that rises to 32% among unpaid carers.

Calls for automatic access to pensions

In response to these barriers, nearly 70% of all respondents said that pensions should be made automatically available to every worker regardless of income, employment status, or hours worked.

This support for universal pension inclusion suggests a strong public appetite for reform.

The experience of exclusion

More than one in three (35%) respondents have at some point in their career felt excluded or unsupported by the pension system due to the nature of their work.

This sentiment was particularly pronounced among self-employed and gig economy workers, underscoring a systemic mismatch between modern work patterns and pension models.

A call for change

The findings come as policymakers and providers consider how to make long-term saving more accessible to a wider range of workers.

PensionBee is calling for reforms that prioritise simplicity, affordability, and broader eligibility to ensure that no one is left behind in planning for retirement.

Lisa Picardo, Chief Business Officer UK at PensionBee said:

“It’s time for a pension system in the UK that reflects the realities of modern working life and the creation of a ‘universal pension’ that includes millions of our nation’s invisible workers.

Too many people working hard outside traditional employment structures are being left behind by the current pension system, and are facing the very real risk of a poor retirement outcome with heavy reliance on the State Pension.

When more than half of gig workers say they simply can’t afford to save for retirement, this stops being a personal finance issue and becomes a systemic failure.

The message from the public is clear: they want a pension system that works for everyone, not just those in secure, salaried roles with employer contributions.

We need a safety net that catches everyone, especially those who will be most in need in later life. Automatic access to pensions, regardless of income, hours or employment status, is the next logical step towards a fairer future.

Retirement should not be a luxury. It’s a right earned through a lifetime of contribution – whether through freelance work, self-employment or unpaid care.”

A universal pension system to include the invisible workers

I hope that Pension Bee are listened to. I hope that organisations interested in inclusion of all workers whether eligible or gig –  are involved through a universal pension system – eventually.

This may be fanciful now , but it may not be in 18 months time. Right now we need to find ways to include invisible workers in the auto-enrolment system.