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Pensions: staff lose out on 5 billion

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UK workers lose out on over 5 billion a year by not joining company pension schemes.

According to research by Prudential, 66% of workers know their employer has an occupational pension but of these 18% are not pension scheme members.

Based on the average employer contribution of 11.33% of salary, Prudential has calculated an employee earning £19,494.80 is turning down an extra £2,208 every year by not signing up for a pension.

The report also shows more than a quarter (26%) of staff do not realise their employer offers a pension even though they are legally obliged to do so.

Martyn Bogira, defined contributions director at Prudential, said: "It's critical UK adults ensure they are building an adequate retirement savings pot if they are to enjoy a financially secure future and avoid having to work past traditional retirement ages or having to significantly reduce their standard of living in retirement."