Pensions - Articles - North ahead of South as most generous employers for pensions

 The North also lucks out on employers most likely to increase their contribution, with 18% of firms saying they plan to pay the minimum initially, with a view to increasing their contribution over time. The South is unlucky again, with only 12% intending to increase their contributions, as are the Midlands, with only 11% of firms planning to up their payments.

  

 Thinking about auto enrolment at your company, do you intend to pay more than the minimum employer contribution?

  

 

 Compared to similar research** conducted by NOW: Pensions last year, the country has been turned on its head with regard to generosity of employer contributions. Last year the South came out on top with 11% of firms planning to pay in more than the minimum contribution, whilst in the North only 5% of employers intended to contribute more, and only 6% in the Midlands. 

  

 The main reason for this increase in intention to pay more than the minimum in the North is down to the fact that 66% of employers in the region believe that contributing more than the minimum will directly help with the recruitment and retention of employees. Two out of five (41%) believe that by contributing more than the minimum, they will encourage employees to do the same. Across the board, in all three regions, more than a third (39%) believe that the minimum employer contribution has been set too low for a comfortable retirement.

  

 Morten Nilsson, CEO, NOW: Pensions said:

 “It’s good to see employers recognising that if they put more money into their employees’ pensions, it could make working for their business a more attractive prospect.

  

 “The reality is that even when auto enrolment is fully rolled out, a combined pension contribution of 8% still isn’t going to be enough for most people. Contributing even a small amount more than they are obliged to do can mean the difference between a frugal or comfortable retirement for their employees.”