Nearly a fifth of employees in smaller firms do not contribute to a pension despite the fact almost a third of employers contribute over 6% of salary, according to research by Barclays Financial Planning (BFP).
The study, of 200 small to medium sized enterprises, found only one in four companies has total pensions take-up by potential employees and 37% has less than 25% of employees in the company pension scheme. Almost 20% of employees working in these companies do not contribute at all to their pension. However, this low take-up is not reflective of the fact almost a third of employers award more than 6% of salary on behalf of their staff and there is a high level of information and advice given to employees on pensions. The survey shows 48% of employers provide access to professional financia...
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