Almost half of companies in the UK have decided to offer a stakeholder pension scheme, according to a recent survey conducted by Bacon & Woodrow.
Out of the 96 major UK companies surveyed, 46% of companies have chosen to offer a designated stakeholder scheme.
Nearly half of those who have decided to offer stakeholder access have already selected a provider. Only 12% of companies providing a designated stakeholder scheme will be offering employer contributions.
Over half of the companies offering a stakeholder scheme will be providing it as an alternative to additional voluntary contributions (AVCs) for employees earning less than £30,000 per annum.
Most companies have made a decision about the provision of stakeholder facilities, with only 11% being undecided on whether they will have to offer a designated stakeholder scheme, 14% being undecided on whether they will offer an employer contribution, and 26% not yet decided whether they will offer stakeholder facilities as an alternative to AVCs
Brian Wilson, head of benefits research at Bacon & Woodrow said: The early decision making on stakeholder by larger employers is very encouraging. They are clearly clued-up and are being well advised. The concern is that smaller employers may not even be aware that decisions have to be taken.
The significant interest in using stakeholder pensions as an alternative to AVCs should be a wake-up call to the government to bring the tax regime for AVCs into line with that for stakeholder pensions.
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