How 500,000 low paid workers can stop losing out on government payouts on their pensions
Low paid workers should push their employer to ensure their work based pensions are based on relief at source schemes so they can benefit from government top ups. Those on net pay based schemes are losing out and more are set to following next April's tax rises.
Around 1.22m people earning between £10,000 and £11,850 in this current tax year are losing out £XXXX to £XXXXX a year according to estimates by pension fund manager Royal London.
Up to nearly 500,000 could be affected from next April when the threshold for paying income tax goes up to £12,500, claims Royal London's policy director Steve Webb, ex pensions minister under David Cameron's coalition government DATES.