Pension pots require fresh thinking, says PwC
A survey of the Midlands workforce suggests that employers are getting “a poor return” for the money they spend on providing pensions for their employees. According to PwC, which conducted the study, 84 per cent of employees either have “no idea” or dramatically underestimate how much it costs to save for a pension.
The survey of more than 300 employees across the Midlands also implies that only 10 per cent of employees take the level of employer pension savings into account in deciding whether to accept a job offer.
A further 80 per cent said it would have no impact on their decision to stay with their employer if their employer-provided pension scheme was reduced or closed.
PwC estimated that UK employers spend £30bn each year on workplace retirement savings.
Jeremy May, pensions expert at PwC in the Midlands, said: “Midlands employers need to ask themselves what dividend their organisation is getting in exchange for the considerable sums they are spending on retirement provision.
“Given that all UK employers currently need to address their employment policies around the impact of April 2011 pension tax changes and October 2012 requirements for pensions auto-enrolment, now is an ideal time to assess whether a shake-up in the way retirement savings are provided can improve value for the employer and its employees.”
