Outsourcing cuts cost of pensions provision

The average annual administration cost of running a pension scheme is £90
per member, according to research by Watson Wyatt.

The survey of 146 pension schemes – covering 4.6 million members – found
that schemes with fewer than 500 members have average annual costs of £123 per
member, compared with just £21 for those with more than 40,000 members. The
average in-house administrative cost for small schemes was found to be £101,
compared with £71 when they are outsourced.

Large schemes have average in-house administrative costs of £36, and cost
£12 less per member per year when the administration is outsourced.  www.watsonwyatt.com,
01737 274 265

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