Corporate Adviser
  • Content Hubs
  • Magazine
  • Alerts
  • Events
  • Video
    • Master Trust Conference 2024 videos
  • Research & Guides
  • About
  • Contact
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG
No Result
View All Result
Corporate Adviser
No Result
View All Result

Fifth of employers missing out on salary sacrifice pensions tax break – Mercer research

by John Greenwood
February 20, 2023
Share on FacebookShare on TwitterShare on LinkedInShare on Pinterest

A fifth of employers are missing out on tax savings by not using salary sacrifice, and many of those that are doing so are not using it effectively, according to research from Mercer.

Research from Mercer also finds that 34 per cent of DC schemes do not offer member access to all retirement options, while over 80 per cent don’t facilitate advice or guidance.

The research, covering more than 300 employers with over 3 million UK savers, finds that more than half of employers have not reviewed the charges paid by themselves or staff in the last two years, while two thirds have not reviewed their contribution or broader benefit design in the last three years.

The scheme survey found 87 per cent of employers are not completely confident they would pass the Pensions Regulator’s auto-enrolment spot-check, while 52 per cent do not know if their DC plan reflects the employer’s ESG beliefs.

Employers are also failing to monitor the performance of their DC pension default strategy, with 57 per cent not having reviewed their default in the last 12 months and 25 per cent having failed to do so in the last three years.

Ken Anderson, principal, DC MOT lead at Mercer, says: “Our analysis indicates that many schemes have plenty to do just to get up to date with where the market is now. Not doing so risks damage to their reputation, corporate goals and, importantly, the retirement outcomes of scheme’s members.

“This report shows that even when schemes appear to be working well, risks may be lurking beneath the surface. In challenging times, schemes can seize opportunities to reduce costs for both themselves and their members and provide them with the support they need now more than ever. Financial well-being, engagement and productivity go hand in hand. Schemes must talk to their  people to help them make the right decisions now and in the future — and to remind them of the value of the benefits they provide.”

 

VIDEO

Corporate Adviser Special Report

REQUEST YOUR COPY

Most Popular

  • Ros Altmann: Link tax relief to higher allocations to UK investments

  • Barnett Waddingham connects first client to dashboard

  • Govt set to delay announcement of ‘Mansion House Accord’

  • TPT first provider to confirm CDC plans

  • 1.6m more people facing poverty in retirement: Scottish Widows

  • Aviva appoints Noon as Master Trust chair

Corporate Adviser

© 2017-2024 Definite Article Media Limited. Design by 71 Media Limited.

  • About
  • Advertise
  • Privacy policy
  • T&Cs
  • Contact

Follow Us

X
No Result
View All Result
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG

No Result
View All Result
  • Home
  • News
  • In Depth
  • Profile
  • Pensions
    • Auto-enrolment
    • DB
    • DC
    • Defaults
    • Investment
    • Master Trusts
    • Sipps & SSAS
    • Taxation
  • Group Risk
    • Group Life
    • Group IP
    • Group CIC
    • Mental Health
    • Rehab
    • Wellbeing
  • Healthcare
    • Musculoskeletal
    • Mental Health
    • IPT
    • Wellbeing
    • Trusts
    • Cash Plans
  • Wellbeing
    • Mental Health
    • Health & Wellbeing
    • Financial resilience
  • ESG

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.