Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • May 2014
05

Financial services 'most generous on auto-enrolment contributions' 

Open-access content Wednesday 28th May 2014 — updated 5.13pm, Wednesday 29th April 2020

Almost a fifth of small- and medium-sized employers in the financial services and property sectors plan to contribute more than the legal minimum into their employee’s auto-enrolment pension, a poll by Now Pensions has found.

2

A survey of more than 400 firms by the pensions trust found that a further one in ten (10%) in that sector said they intend to increase their contributions over time.

According to the poll, the financial services and property sectors was the most generous in terms of auto-enrolment employer contributions. By contrast, only 1% of construction firms said they would pay more than the legal minimum contribution. This was followed by the arts & leisure and manufacturing sectors, 2% and 3% respectively.

Around 12% in the service industry said they were willing to pay more than the minimum employer contribution for auto-enrolment, followed by the education and health sector with 9%.

However, only 8% of the SMEs surveyed said they would pay more than the minimum, with a further 9% stating that they would pay the minimum initially, with a view to increasing contributions over time. 

Morten Nilsson, chief executive of NOW Pensions, said employers in the financial and property sectors were 'waking up' to the benefits of offering their employee a more generous pension package.

'The perception is that large firms offer better pension provision than their SME counterparts but this isn't necessarily true,' he said. 'Smaller companies very often know their employees personally and have a more paternalistic attitude.'

A more generous pension was intended to help in recruiting and retaining staff, according to more than over half (56%) of those polled who intend to pay more than the minimum.

However, 43% said that the minimum employer contribution was set too low by the government.  More than a third (39%) hoped that by contributing more, their employees would do the same.

Around 40% of the firms that plan to make minimum contribution said it was because of their focus on compliance.

A third claimed they want to keep things simple and think paying more would complicate matters, while over a quarter (26%) said keeping costs low was a priority A further 21% said difficult trading conditions meant they so they were tightly managing their employee remuneration.

This article appeared in our May 2014 issue of The Actuary.
Click here to view this issue
Filed in
05
Topics
Pensions

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Calling all GI Actuaries looking to move into contracting

England, London
£700 - £1000 per day
Reference
146169

A chance to gain capital modelling experience.

London, England
£70000 - £110000 per annum
Reference
146168

Capital Contractor GI

England, London
£700 - £1000 per day
Reference
146166
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ