Hundreds of companies to stop paying pension top-ups during coronavirus crisis
UP to 500 companies are expected to stop paying pension top-ups on employees' retirement funds during the coronavirus crisis, experts have warned.
The total top-up contribution from employers will be slashed by £500million, which could leave workers out of pocket when they come to retire.
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"But it will be vital to get things back on track once the crisis is over so that a realistic plan is put in place to deal with the shortfall in the pension scheme, particularly as this could have materially increased due to changes in financial markets".
David Fairs from the The Pensions Regulator said: "We are clear that the best support for a pension scheme is a strong employer.
"So it is vital that we support businesses and trustees through this crisis while balancing the risks to members.
"In the worst case scenario, where a business does sadly fail, members of defined benefit schemes can be reassured that the Pension Protection Fund is ready to support them."
Workers who have been furloughed will still get their employer's pension contributions paid for by the government under the Coronavirus Jobs Retention Scheme.
Pensions savers were given a boost to how much they can save each year and still earn tax relief on under plans announced in the Budget.
Retirees have also seen their income increased this month as the state pension has risen by 3.9 per cent.
We've also put together a guide to how saving an extra 1 per cent of your salary now can boost your pension pot by 25 per cent.