Employers Will Reduce Pension Contributions
Published / Last Updated on 28/01/2008
Employers will reduce pension contributions according to a survey conducted by Royal London. This will follow the introduction of personal accounts in 2012, most employers will level down their contributions to work-based pension schemes.
The poll revealed that 87 per cent think the introduction of personal accounts will lead to a levelling-down of contribution, while 13 per cent disagreed. Voters argued that smaller employers may see 3 per cent as an adequate government endorsed figure.
Our view
The Government are setting the standard level for contributions so those that already pay more may gradually reduce pension contributions and those that do not have a pension scheme will be forced to pay into one for staff.
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