One in four UK companies say they consider, or would consider, giving employees cash instead of offering a pension, says an international human resources consultancy.
A survey by Towers Perrin suggests 24% of all companies say they may introduce a cash alternative to pension arrangements as an option for their workers.
Some 14% also say they are considering, or would consider, making this a company-wide policy.
Cash in hand as an alternative to retirement arrangements therefore looks set to become more popular over the next couple of years, the Towers Perrin survey says.
“Should this policy achieve momentum in the UK it would place an even greater responsibility for retirement income provision on the individual,” it says.
Towers Perrin believes the corporate strategy of providing cash instead of a pension could grow even quicker than the shift from DB schemes to DC schemes have over the last couple of years.
"Such a rapid transformation in the design and delivery of the UK's pension benefit is not unthinkable," the company says.
It adds: "The growth in DC pensions may, when viewed historically, be seen as a stepping stone from DB to cash, rather than the other side of a DB/DC pension coin."IFAonline
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First mentioned in Cridland Report
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