Companies predicting pension changes

Fri, 15 Dec 2006

Almost 50 per cent of small to medium-sized business employers believe that the government's pension reform could cause many company pension schemes to be reduced or ended, according to new research.

Additionally, 18 per cent predict that employers will terminate their own pension schemes and adopt the government's new National Pension Savings Scheme, a study by Barclay's Wealth has revealed.

Some 31 per cent of those polled also expect employers to continue offering their company pension scheme, but reduce their contributions to match the government's model.

However, 27 per cent of respondents believe that most organisations will continue to offer company pension schemes at the current level.

Stephen Ingledew, director of Barclays Financial Planning, comments: "Our research shows that many businesses are completely unaware of the changes and therefore unprepared for introducing the National Pensions Savings Scheme to their staff."

He added that a "strong danger" exists that workers currently enrolled in company pension schemes will see the level of contributions provided by their employer fall.

The Department for Work and Pensions recently claimed that the reforms would offer a better provision for millions of workers in the UK.


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