Research from Axa has found that 34% of employers that contribute 3% or more to a pension scheme will consider reducing their contributions to 3% if the National Pension Savings Scheme is introduced. But forty nine per cent of employers say that they will not cut contributions at all.
Axa also found that 27% of company pension scheme members are very keen on the idea of a National Pension Savings Scheme, which represents 7.8 million people out of a total workforce of 28.9 million who support a mandatory pension.
Our view
This government puts ever increasing pressure on employers, large and small. Is it any wonder that employers are 'upping sticks' and moving services overseas?
Expect many more employers to shed employees in the UK and if they really do need them, expect more temporary contracts rather than permanent contracts.