Small businesses still offer final pension schemes

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.

By Quentin Reade

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