Employee Benefits research: Pension reforms will not fix crisis

The government still has a long way to go to convince all employers of the merits of the pension reforms that are due to come into effect in October 2012 under the Pensions Act 2008.

Just 10% of respondents to the Employee Benefits/Hymans Robertson Pensions Research 2009 believe the reforms, which include auto-enrolment and compulsory employer and employee contributions, will solve the UK’s pensions crisis.

As 2012 draws nearer, an increasing number of employers are realising the reforms could impact on their pensions provision. This year, just 21% of respondents to the survey said the reforms would have no impact on their scheme, which is markedly down from the 50% in 2007 and 62% in 2006. This realisation is likely to stem from greater understanding of the legislation and its true impact on pension schemes.