Total employer contributions to final salary pension schemes increased by nearly 50% in the past year, research indicates.
A survey spanning 284 occupational schemes, or sections of schemes from the Incomes Data Service(IDS) has revealed employer’s contributions increased from £5,519m to £8,262m.
This 49.7% increase is up from an 8.6% increase in 2002/03 and is the biggest rise since the survey began in 1996, beating the previous best figure of 16% recorded in 1999/2000 by some margin according to the IDS.
Helen Sudell, editor of the IDS Pensions Service, calls the rise a ‘a pretty staggering figure’ adding: “We have warned before that the widespread closure of final salary schemes to new entrants is just the beginning of a much bigger movement away from paternalistic provision.”IFAonline
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