70% are against changing the current pensions tax relief system

pensions_note_430

More than two-thirds (70%) of employer respondents do not think that the current pension tax relief system should change, according to research by Hargreaves Lansdown.

Its survey of employers also found that 41% of respondents are considering new reward strategies for their highest earners.

The research also found:

  • 76% of respondents believe that financial education is the best means of addressing low pension contributions.
  • More than a third (35%) of respondents think that opting out of should be abolished.

Nathan Long, senior pension analyst at Hargreaves Lansdown, said: “Employers are sick to the back teeth with non-stop tinkering with the pension rule book, the majority simply hoping the government will opt for a timeout.

“The capping of tax relief for higher earners is causing bedlam for employers. Many are having to change whole parts of their reward package to help out just a handful of their most senior staff. Paying higher earners cash in lieu of pension contributions seems popular, but employers are also looking to help staff with their long-term savings.

“Financial education, savings instead of a pension and financial advice will play a far more important part in workplace benefits come the new tax year.”