Aviva has launched an innovative pension scheme with ride hailing app Bolt to offer registered drivers a pension the duo have called “an industry first”.
Previously, drivers may have struggled to access a pension because of the ‘qualifying earnings criteria’ that normally applies. To be eligible for a pension, people need to earn between a minimum of £120 and maximum of £967 a week.
Drivers registered with Bolt are independent contractors and their earnings can fluctuate week to week potentially making them ineligible for a typical worker pension.
In response to this issue, the insurer and employer worked together to remove the maximum and minimum weekly earnings, so every completed journey on a registered driver’s account will be eligible for pension payments, regardless of how much they use the platform.
The scheme, which opens to drivers from 1st of May 2024 and is provided by Aviva’s workplace pensions business, will see drivers contribute 5 percent of fees from every completed trip into their pension pot, to which Bolt will add a further 3 percent contribution.
Bolt will also cover all joining costs for drivers who invest in the scheme.
The scheme is structured as a private group personal pension (GPP), which is a contract-based pension scheme where Bolt enables self-employed drivers to contract directly with Aviva. It also gives drivers the option to invest in a Sharia fund.
Emma Douglas, director of Workplace Savings and Retirement at Aviva, said: “We’re proud to have worked with Bolt to develop an innovative pension scheme for self-employed private hire vehicle drivers registered on Bolt’s platform which allows for the flexibility they want right now, along with offering financial security in retirement. By adapting our standard pension solution to the bespoke needs of this sector, we’re helping our customers get ready for better financial futures.
“Removing the minimum and maximum earnings is important because it considers the flexible nature of the UK-ride hailing industry. It also complements the incoming changes to auto enrolment which are set to remove the lower qualifying earnings threshold. This should help ensure part-time workers and those with multiple jobs get a contribution based on every pound they earn.”
Emily Dalton, UK senior operations manager at Bolt, said: “We’re delighted to announce our partnership with Aviva in launching a new pension scheme. This development means most drivers across the UK ride-hailing sector now have access to a market leading pension scheme.”
