DC scheme members losing out
UK - Some 40% of people are failing to take advantage of pension contribution matching offered by their employers, according to DC Link's third annual investment survey.
The survey showed an increasing number of people were virtually "pouring money down the drain": a scheme member could be missing out on contributions from their employer of up to 5% a year, with the average lost contribution standing at £1,162 annually, (based on average national earnings of £23,244).
The survey also showed that nearly 20% of the UK's working population in defined contribution (DC) pension arrangements is paying the bare minimum into their pension scheme to be a member.
It is younger employees and those on lower wages who are missing out on most benefits, with just 50% of 20 to 30 year olds taking the maximum on offer from their employer.
The figures show only 10% of people paid over and above the maximum amount matched, compared to 11.5% last year.
DC Link chief operating officer Alan Hubbard said: "With over 90% of members still failing to receive adequate guidance from providers, employers, trustees and advisers, many employees remain unaware of the benefits available to them.
"Employers need to take greater steps to educate employees - particularly those who are younger and missing out on substantial amounts of money.”
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