More than half (53%) of respondents that intend to contribute more than the minimum pension contributions for auto-enrolment think it will help to recruit and retain staff, according to research by Now: Pensions.
Its research, which surveyed 450 small and medium-sized enterprises (SMEs), found that 40% believe that by contributing more than the minimum they will encourage employees to do the same.
Of all the respondents that intend to contribute more than the minimum, 54% have not decided how much more they will contribute, while nearly 24% intend to contribute 1% more than the legislative minimum.
The research also found:
- 5% of respondents in the north of England said they intend to pay more than the minimum employer contribution for auto-enrolment, compared to 11% of respondents in the south and 6% in the Midlands.
- 16% of respondents in the Midlands said they intend to pay the minimum amount initially, but will consider increasing contributions over time, compared to 8% of respondents in the south and 5% in the north.
- 44% of respondents in the north intend to pay the minimum auto-enrolment contribution, with 47% citing compliance and 24% citing keeping costs low as the main reasons.
- 62% of respondents in the south intend to pay more than the minimum contribution either initially or over time because they think the minimum employer contribution has been set too low for a comfortable retirement.
Morten Nilsson (pictured), chief executive officer of Now: Pensions, said: “Workers are facing a postcode lottery when it comes to their retirement income.
“Employers in the south are taking the lead, demonstrating a long-term approach to ensure their staff have the best chance of a comfortable retirement.
“If employers contribute even a small amount more than they are obliged to do, this can make a big difference to employees’ final pension pots.”