Millions of workers are still missing out on pension savings despite auto-enrolment laws, new figures suggest.
Self-employed workers, carers and those in low-paid jobs are amongst those missing out on crucial support, a report by NOW: Pensions and the Pensions Policy Institute (PPI), found.
Many people who work for an employer are automatically enrolled into a workplace pension.
But the report argues that automatic enrolment was designed for traditional patterns of work and is not geared to help employees who take significant career breaks, work in multiple or part-time roles, or move frequently between jobs.
It said having "non-traditional" work patterns, not owning your own home and having limited access to higher-paid jobs can all impact on the ability to save into a retirement pot.
The PPI said removing the £10,000 earnings trigger at which someone is auto-enrolled would result in an additional 2.5million people saving into workplace pensions.
On private pension savings, the report found only about a third of self-employed people can afford a private pension.
It found that only 42% of BAME groups, 53% of carers and half (50%) of disabled people have their own savings for retirement.
This compares with two-thirds (65%) of the population generally.
On average across all the under-pensioned groups, people have £12,044-worth of private pensions built up, compared with £80,690 across the general population - including both those who have pension savings and those who do not.
Helen Morrissey, pension specialist at Royal London, said: "While auto-enrolment has brought 10m people into pensions these figures show where the cracks in the policy lie.
"If you aren’t able to work full time, have gaps in your employment or are self-employed then the likelihood is that you aren’t being well served."
Joanne Segars, chair of trustees at NOW: Pensions, said: "Some groups in the UK face huge savings gaps and those individuals who most need to save for later life are often the people who are effectively locked out of the current auto-enrolment system."
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Phil Brown, director of policy at workplace scheme the People's Pension, said: "Our own research into the ethnicity pensions gap earlier this year showed that the average ethnic minority worker is £3,350 a year worse off than people of the same age from other groups.
"When the economic situation permits, we strongly urge that the Government removes the £10,000 a year earnings threshold for automatic enrolment as well as reducing the age eligibility from 22 to 18. This will allow more people to save for a pension and for longer."
