Many workers face a “pensions lottery” when retiring, the Trades Union Congress (TUC) has warned.

New TUC analysis has shown that the average male worker could be more than £250,000 worse off if they retire on a bad year for the markets rather than a good one. And the difference for an average woman could be nearly £150,000.

The TUC is calling on the government to offer savers better protection from market ups and downs by allowing them access to collective pension schemes.

Collective pensions would allow savers’ money to be pooled and invested more efficiently, reduce the risk to an individual if they retire in a bad year for the markets and provide a secure and consistent income throughout members’ retirement, the TUC said.

The TUC said it is frustrated that ministers have kept the development of collective defined contribution schemes ‘on ice’.

TUC deputy general secretary Paul Nowak said: “Millions of workers face a pensions lottery in retirement. Market jitters can make someone tens of thousands of pounds worse off.

“The government must allow employers to offer better pensions. Collective pension schemes would help many to have a better standard of living in old age.”

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