Small Businesses not offering Pensions | Peterborough
According to the Association of Consulting Actuaries (ACA), its believed that Two-thirds of small companies don’t offer their employees a pension, and whilst many that do, are not providing enough contributions, research suggests.
Most defined contribution pension schemes are failing to keep up with the contributions necessary to cover the longer life expectancy.
By 2016, all companies will have to offer staff a pension. ACA say that small companies expect 35% of employees to opt out of he schemes.
They also said that defined contribution pension schemes which are run by small companies are attracting combined employer and employee contributions of less than 8% of earnings.
The Government has stipulated that by October 2017, contributions must be at least 8%, with a minimum of 3% from the employer, plus 4% from the employee and the remaining 1% coming from tax relief. But the ACA said that this needed to rise well above this minimum