The take-up of stakeholder by employees varies dramatically between different industries and regions...
The take-up of stakeholder by employees varies dramatically between different industries and regions, according to a survey from Abbey National.
The bank's report shows that different levels of employer contributions have led to differences in take-up rates for schemes.
Employees in the construction industry are the best provided for with 45% of businesses contributing to employee policies. Those in the retail trade are the least likely to take up stakeholder, with only 23% of employers saying they would pay into pensions.
Differences between regions are also exposed by the survey. At 47%, employers in the Northeast and Yorkshire are the most likely to pay into schemes, while those in Wales are least likely.
According to Abbey National, most employers were on target to meet the 8 October stakeholder deadline. The group's research found that 85% of UK businesses have designated a stakeholder provider but take-up will depend on whether employers contribute, said Steve Conley, group development manager for pensions at Abbey National.
He added: 'In general, there is a 20% take-up where an employer does not contribute but a 60% take-up where it does.'
In smaller companies, only 27% of employers planned to contribute to their employees schemes, while 37% of larger employers will do so, Conley said.
Larger companies are also more likely to have already designated a stakeholder provider. Those with more than 50 employees have a 90% rate of designation while only 80% of those with less than 50 employees have designated.
The survey found that employees were not able to make full use of the internet to apply for pensions, with only 21% able to apply via the internet or intranet.
No preferred charging model
To 1,552 families and businesses
HL and Liberty SIPP slowest
Lifetime and annual allowances