Part-time workers facing £119,000 'pension penalty'

Standard Life says working three days a week could lead to £119,000 less in retirement funds

Jasmine Urquhart
clock • 2 min read
Switching to a three-day work week over a ten-year period could lead to workers being £18,000 worse off at retirement, Standard Life says
Image:

Switching to a three-day work week over a ten-year period could lead to workers being £18,000 worse off at retirement, Standard Life says

Part-time workers could face a ‘pension penalty’ of up to £119,000 if they switch from full-time work to working three days a week for an extended period, analysis from Standard Life has found.

The analysis found a full-time worker starting at age 22 on a salary of £25,000 per year who paid in the minimum monthly auto-enrolment contributions would amass a total retirement fund of £434,000...

To continue reading this article...

Join Professional Pensions

  • Unlimited access to real-time news, analysis and opinion from the industry
  • Receive our in-depth monthly magazine in either print or digital format
  • Access our Sustainable Investment Hub covering news and opinion from thought leaders in the ESG space
  • Receive important and breaking news stories selected by the Editors in our daily newsletter
  • Hear from industry experts and other forward-thinking leaders
  • Receive a monthly members-only newsletter with exclusive opinion pieces from leading industry experts and a feature from the magazine in advance of its release date

Join now

 

Already a Professional Pensions
member?

Login

Jasmine Urquhart
Author spotlight

Jasmine Urquhart

Senior Correspondent at Professional Pensions

More on Industry

Apax Funds to acquire Benefex owner Zellis Group from Bain Capital

Apax Funds to acquire Benefex owner Zellis Group from Bain Capital

Payroll and HR software solutions business bought Benefex in 2018

Jonathan Stapleton
clock 16 April 2024 • 1 min read
News Digest: 'Nobody is willing to help me cash in my £65k Boots pension'

News Digest: 'Nobody is willing to help me cash in my £65k Boots pension'

PP brings together all the latest news on pensions from across the national and financial media

Professional Pensions
clock 16 April 2024 • 1 min read
TPR's statement of strategy proposals raise 'grave concern' among industry

TPR's statement of strategy proposals raise 'grave concern' among industry

Organisations have warned against the collecting of ‘endless items of data’

Holly Roach
clock 15 April 2024 • 6 min read
Trustpilot