Average occupational contributions too low - Mercer

The warning comes as the Mercer's 2006 Work & Savings Survey reveals average contributions rates have grown from 9.5% of salary in 2002 to 10.4%. However, although more than half of people in the survey expect a pension of more than 50% of their pay on retirement, the average employee with 30 years' service is more likely to get just 20% to 30% of pay at current contribution rates. A survey of more than 400 UK organisations shows employers contribute an average of 6.8% and employee rates have reached an average of 3.6%. The figures mean employees meet one-third of their pension cost and...