Pensions - Articles - Aegon welcomes the extension of Job Retention Scheme

 Steven Cameron, Pensions Director at Aegon comments: “The 7.5 million employees who have been furloughed and their 1 million employers will be hugely relieved to hear that Rishi Sunak is extending the scheme until the end of October, with them receiving 80% of previous salary capped at £2,500 a month. Equally, many employers and employees will be pleased to hear that from August, new flexibilities will allow part time furloughing with employers supplementing Government payments so individuals continue to receive the current 80%.

 “This should also be good news for the retirement prospects of furloughed employees. Employers can currently claim employer minimum auto-enrolment pension contributions for furloughed employees on their reduced furloughed salaries. We expect this to continue, so provided employees don’t opt out of workplace pensions, they will still benefit from an employer contribution. While during this crisis it is all too easy to focus solely on today, we hope the ongoing Government support will avoid damaging individuals’ long term retirement prospects.”