The new CBI and Scottish Widows survey represents 240 businesses of all sizes, sectors, regions and nations in the UK, providing a unique insight into business perspectives on the future of workplace pensions. Discover views from business leaders on issues ranging from automatic enrolment and engagement with pensions, to the regulation of defined benefit scheme funding and pensions tax.
Key findings at-a-glance
Firms contribute billions of pounds to employees’ pension pots every year and nearly all of them believe there is a strong business case (98%) and moral case (95%) for doing so.
The success of automatic enrolment has led to 10 million workers saving more for retirement, and the survey shows that employers support its targeted extension to help more workers. 74% of businesses want to see it made available to the self-employed and those earning less than £10,000, allowing for more part-time workers and those with multiple jobs to better save for their future retirement.
Increasing employees’ engagement with their savings is high among firm’s priorities, not least to encourage higher levels of saving.
But employers are still raising concerns over the cost of defined benefit schemes, employee disengagement with their pension pots, and the impact of recent changes to pensions tax relief. Businesses have identified ways in which the government can help:
- Over eight in ten (81%) believe the government should offer more support to defined benefit schemes who are struggling with costs but want to remain as the sponsor
- Employers worry that the recent changes to pensions tax relief is undermining employee confidence to save. Almost six in ten (58%) believe that preserving the current tax relief framework should be a key priority for the government
- Over three quarters of businesses (76%) want the government to prioritise educating people about the importance of engaging with their pension.
Working together, businesses and government can set a path that continues to boost the number of workers saving for their retirement and the amount they are saving.