According to Punter Southall , while 59% of companies still operate final salary schemes, only 5% offer membership to new employees and 94% have a DC scheme as the main scheme open to new entrants. More than nine out of 10 (92%) think employers should carry out regular reviews of their schemes.
The survey also shows three quarters (75%) of respondents believe they share a responsibility towards their employees' financial education, and while 48% do nothing to re-promote the pensions scheme to employees who have not previously joined, this figure is significantly down on last year (57%).
While 86% of respondents expect a change of government at the forthcoming election, most (57%) believe such a change would have little impact on pensions, and only 13% think it would have a positive impact. There appears to be wide-scale disenchantment with government interference in pensions, with one respondent urging government to "stop mucking about with pensions legislation".
Damian Stancombe, head of corporate DC at Punter Southall, said: "Social, economic and political pressures are influencing corporate pension provision and giving rise to considerable concern among UK employers. Despite these concerns, employers still value pensions as a recruitment and retention tool as a vital part of their benefits package. The overwhelming importance placed by employers on contributions, investment and communication reinforces the need for thorough and effective governance of DC schemes to ensure the interests of both employers and employees are protected.
"Unfortunately, politicians on all sides have clearly failed to convince UK plc that they have adequately addressed the challenges facing our pension system. Our view is that these issues must be de-politicised. The focus must be on solutions and reaching consensus on the future, so that improvements can be made that will persist in the face of changing governments.
"The baby boomer generation has fared pretty well from pensions in the UK and will be the last to fully benefit from final salary pension schemes. Generations X, Y and beyond now need effective and enduring measures from our country's leaders to help them avoid a bleak future.
