Despite government attempts to goad the country into action on retirement, nearly four-out-of-five defined contribution (DC) pension scheme members are still only investing the bare minimum each month.
According to a new study by HR consultancy Aon Consulting, just 21% of DC members save more than the minimum required contribution. Workers are blindly following their employers’ lead when it comes to managing their pension pot – only a quarter of staff switch from the default investment option offered by their organisation.
The report also shows that there is an information deficit to be addressed; six-out-of-ten respondents said that employees need more information and support to manage their schemes. This probably explains why 73% of employers thought staff were in the dark about the need to monitor contribution levels and fund performance.
For a copy of Aon Consulting’s research call Paul Macro on 0113 245 3366.Source: Accor Services