Staff stall over DC contributions

Many staff are reluctant to increase their contributions to defined contribution (DC) schemes, despite rising numbers opting to take up such schemes. According to Hewitt Associates’ 2006 DC Scheme Survey, two-thirds of open employer-sponsored pension schemes are now DC, compared with 55% a year ago. Take-up rates for DC schemes are also up, with 60% of employees joining a scheme in the last year, compared with 50% in 2005. However, the research also revealed that contribution levels for DC schemes remain static at an average of 4% for employees and 7% for employers.

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