22 September 2010
Research for the Department for Work and Pensions (DWP) has
shown that:
- 23% of private sector firms offer their employees a stakeholder
plan but less then 1% of these employers contribute.
- 5% of employers offer a group personal pension but only 5% of
employers contribute.
- 2% of employers offer an occupational scheme.
The report goes on to say the number of group personal pension
and stakeholder plans offered by employers has not changed notably
since 2007. However, the number of firms offering an
occupational scheme had fallen by 5%.
The report also suggests the fall in number of firms paying
towards an employee's pension is a major factor for the reduction
in overall pension provision.
A DWP spokesman said:
"This survey shows that the current level of pension provision
is too low and that our planned reforms are necessary."
"Our reforms will result in 5-9 million people newly saving
more. This includes increasing the pensions of more than a million
people in workplace schemes who are currently getting nothing or
less than three per cent from their employers."
"We are committed to automatic enrolment and to getting the
details right. This survey will help inform the findings of an
independent review of automatic enrolment due to be presented to
the government later this month."
To view a copy of the report click here
