A startling 56% of employers offering defined contribution (DC) pension schemes accept that their contributions will not provide an adequate pension for staff and half of them are not willing to do anything about it.
The Employee Benefits/Barclays Pensions Research 2004 highlights that the occupational pension system in the UK needs updating.
This message has been echoed by the Pensions Commission’s first report by chairman Adair Turner. The report says that the pensions system is in significant decline; and one suggestion is to raise the national retirement age.
Another way to improve this situation is for employers to introduce flexible retirement – our research shows 12% of employers plan to do this.
A second report by the commission, due out next year, is expected to offer employers specific tips designed to fix the problem.
But as our research shows, the problems may be more complex than this. Despite 77% of employers saying that they try to encourage more of their employees to join their DC pension schemes, only 11% report that all eligible employees are members.