Many employees in defined contribution (DC) company pension schemes can expect contributions of up to 15% of their salary which is the level used by the Pension Commission in its illustrations of pension outcomes.
However, the research by Watson Wyatt found contributions (of which the employer typically pays two-thirds) at this high level are only usually available to employees willing to make contributions beyond those needed to join the plan. Those who do not are effectively missing out on up to 4% in deferred pay, the consultancy warns. The average combined (employee and employer) contribution rates to all defined contribution (DC) pension schemes of the UK largest companies have risen by a full percentage point to 14.7% of salary in the last year, according to Watson Wyatt’s 2007 FTSE 100 DC Pe...
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