One-in-five small and medium businesses are still offering final salary pension schemes, according to a new report.
The report, by Momentum Financial Services, shows:
- 21 per cent of SME's offer final salary schemes
- 16 per cent of SME workers receive no employer contribution to their pension
- 72 per cent of SME's believe that independent financial advice is essential in the pensions market
But John Robbie, corporate manger at Momentum, said that most contributions are too small: "Some steps to improve the pension shortfall have been made with the introduction of stakeholder pensions but take up has, however, been lower than desired," he said.