A recent survey of 2,000 UK adults currently paying into a workplace pension conducted by insurance providers, Aviva, shows that a workplace pension is the second most valued benefit by employees behind a bonus scheme.
More than half (52 per cent) of people surveyed would be willing to contribute more than 5 per cent of their salary themselves, with almost a third (29 per cent) saying they would pay in 10 per cent or more. Under auto-enrolment the current minimum pension contribution for an employee and their employer is just 2 per cent of salary (including tax relief), rising to 5 per cent in 2018 and 8 per cent in 2019.
In this competitive recruitment market, offering a benefits package that goes beyond just salary is important. Businesses should therefore use auto-enrolment to their advantage, as a pension can be a powerful incentive when attracting and retaining the right people.
If you have not already done so, we strongly recommend that you speak to a pensions adviser as soon as possible. We have specialists who are able to assist.
Please contact Matthew Burge or your usual Beavis Morgan Partner.