More than 40% of senior management staff will be less engaged with their pension schemes as a result of tax changes introduced on 6 April 2011, according to research by pension actuaries Punter Southall.
The survey also shows that around 20% of respondents have already had experience of members wishing to opt out of pension schemes in the light of the new tax regime.
Only 12% of respondents described themselves as fully prepared and, while 50% said they were almost ready for the changes, a sizeable percentage indicated that they still had a lot left to do (24%) or were not at all ready (5%).
In terms of the work that has been done so far, around 90% of respondents indicated that communications with pension scheme members about tax changes had been sent or were planned in the near future.
Jane Beverley, head of research at Punter Southall, said: “It was widely considered that the previous government’s policy of pensions taxation for high earners would lead to a high degree of disengagement among high earners.
“Today’s survey results make clear that, even under the amended policy based on a reduced annual allowance, the restriction of tax relief has had a disincentive effect on some high earners, with around 40% of respondents thinking that senior management would be less engaged in schemes over the longer term.
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“The government should monitor the implementation of this policy carefully to ensure that it does not conflict with its intention of encouraging workplace pensions savings.”
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