Government's new pension scheme shunned
A new survey has revealed that only 2 percent of employers plan to use the Government's new workplace pension scheme.
Businesses that don't currently have access to a pension scheme are being offered an option set up by the government. But the survey, conducted by consultants Aon Hewitt, has revealed that the vast majority of them will choose not to take up the offer.
The survey, which covered 110 companies of varying sizes and across a number of industry sectors, found that only 2 percent of respondents plan to take up the government's National Employers Savings Trust (NEST) scheme. The vast majority of firms will instead be using alternative pension arrangements.
James Pattern, of Aon Hewitt explained that: "where possible many companies prefer to use existing vehicles to limit the amount of change required."
Mr Pattern said; "More good news is that almost all respondents that have reached a decision on the matter expect to give new hires access to the same DC contribution structures as existing pension savers."
There are concerns though that if a significant number of businesses do shun the NEST scheme, it may face significant funding issues.