Minimum contributions under pension auto-enrolment should rise to 12% of eligible salary by 2020, according the Association of Consulting Actuaries (ACA).
The organisations' Smaller Firm's Pensions Survey of employers with 250 workers or fewer found average combined contributions of 9% of salary for members of trust-based schemes and 7.5% for those in contract-based schemes. This is almost unchanged from the contribution levels of 2010 and only slightly higher than in 1996. Since 1996 average employer contributions have dipped slightly from 5.6% to 5.2% while employee contributions rose from 2.6% to 3.65%. The ACA said the trend is alarming given lengthening life expectancy and the poor investment returns of recent years and called for ...
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