The majority of employers are in favour of using auto-escalation schemes to increase contribution rates in defined contribution (DC) schemes, according to research from the Association of Consulting Actuaries (ACA).
The organisation's 2013 Pension Trends Survey found that almost six out of ten employers (57%) supported arrangements modelled on the Save More Tomorrow programme adopted in the US. The survey highlighted the need to increase DC saving rates in the UK, revealing that contributions had remained virtually unchanged over the last decade. Average combined employer and employee contributions have risen from 9.4% to 10% since 2003, while average contributions to defined benefit (DB) schemes have increased from 17.6% to 28%. The ACA said this meant contributions had failed to keep pace wi...
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