Small firms fail to up pension contributions

The majority of small businesses' pension schemes attract less than 8% of earnings in combined employer and employee contributions. However, by 2017 contributions must be 4% of earnings from the employee and 3% from the employer. The ACA's Smaller Firms' Pensions Survey finds defined benefit (DB) schemes run by smaller firms are much healthier, with the average scheme receiving 24% of earnings. However, around 90% of DB schemes are closed to new entrants and 41% are shut to future accrual. Small firms make up 99% of all private sector enterprises and employ 60% of UK private sec...