Thousands Missing Up to £4,500 in Pensions Due to Employer Error

Thousands of women in the UK may be missing significant amounts from their pension pots due to a common error made by employers during maternity leave. Under workplace pension rules, employers are required to continue contributions based on a woman's full salary; however, many have incorrectly reduced these contributions to match lower maternity pay. Advocacy group Nugget Savings reported that over 100 out of 236 surveyed women identified discrepancies, with missing amounts ranging from hundreds to £4,500. The issue may have begun with auto-enrolment in 2012, affecting potentially millions of women, and many are unaware of the shortfalls. While some women have successfully reclaimed their lost contributions, others have faced resistance from employers. Experts warn this problem is likely just the tip of the iceberg, exacerbating the existing gender pension gap.