According to a Pension Strategy survey by Towers Watson, just 15% of employers stated that their pension plan has been designed to help staff save for their retirement. The most common objective of employers (65%) for providing a defined contribution (DC) pension plan was to ensure they were competitive in the market, rather than to ensure that their employees have a suitable income for their retirement. 6% of employers responded that their key objective was to comply with legislation.
Will Aitken, senior DC consultant at Towers Watson commented: “At the current time, many employers have focused on what goes into DC – market competitive contributions, rather than what comes out – adequate pensions. The underlying message seems to be that that, like mortgages, employees need to take ownership of their own finances. Of course, the question is whether employees see it the same way.”