Pension benefit not appreciated by employees

Less than half of employers believe their employees appreciate their company pension, and that number is shrinking fast.

According to the Mellon Key Pension Issues Survey 2004, only 41 per cent of employers believe their workers appreciated the pension element of their employee benefit package.

Employers and employees seem divided on the importance of occupational pension provision.


Employers thought pensions were the second most important factor in an employment package, but in contrast only 15 per cent thought pension provision was important in attracting new employees.

Surprisingly, more than two-thirds (68 per cent) of employers support compulsion for employer provided pensions.

Ian Ellis, principal and senior consulting actuary at Mellon HR&IS, said: “We know pensions can be a complex and daunting subject, but that does not remove the need for employees to understand their benefits.

“Communication is key to plugging the savings gap Ð something the Pensions Act 2004 has made some provision for, but more can and needs to be done,” he said.

 

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