FinancialAdvice.co.uk Logo

Qualified advisers answering your
Financial Questions
call 0800 092 1245

Employees may be missing out on higher pensions

25/02/2015

Many employees of the UKs biggest companies are not taking advantage of opportunities to increase their pension pots, research from consultant firm Towers Watson has shown.

Staff in large companies are not taking up all the pension contributions on offer from their employers, missing out on large amounts of money, the research found.

Many large companies offer pension contributions of 10% or 11% of the employees salary. This is higher than the automatic default contribution, which usually stands at 4% or 5%. To receive the higher percentage, employees have to increase their own pension contributions. In the past, people have refrained from this as they did not want to tie up large parts of their salary into an annuity, which would pay them out a annual retirement income.

With the new pension regulations being introduced in April this year, there will be less need for pensioners to buy an annuity with their pension saving, and instead they can withdraw their savings as cash. The report claimed that it is expected that employees, especially older ones, will save more into their pension and therefore receive more pension contributions.

Need financial advice?


If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.

Share this..

Related stories

Financial Guides

Financial Calculators

Our useful calculators can help you get your finances in order:



Latest News

Blogs

Helpful new tax year facts that could affect you and your money


Blog | Seven helpful new 2016/2017 tax year facts that could affect you and your money. Our recent online blog shares a brief outline on how to stay up to date.


Read more

Useful Links

Popular Searches

Please Enter More Details

 
Enter More Details
Continue