More than two-thirds (70%) of employer respondents do not think that the current pension tax relief system should change, according to research by Hargreaves Lansdown.
Its survey of employers also found that 41% of respondents are considering new reward strategies for their highest earners.
The research also found:
- 76% of respondents believe that financial education is the best means of addressing low pension contributions.
- More than a third (35%) of respondents think that opting out of should be abolished.
Nathan Long, senior pension analyst at Hargreaves Lansdown, said: “Employers are sick to the back teeth with non-stop tinkering with the pension rule book, the majority simply hoping the government will opt for a timeout.
“The capping of tax relief for higher earners is causing bedlam for employers. Many are having to change whole parts of their reward package to help out just a handful of their most senior staff. Paying higher earners cash in lieu of pension contributions seems popular, but employers are also looking to help staff with their long-term savings.
“Financial education, savings instead of a pension and financial advice will play a far more important part in workplace benefits come the new tax year.”
