More than 40% of employees of UK businesses are likely to take out a stakeholder pension if offered access to one by their employer, according research by Barclays and Legal & General.
The research found that this figure would rise to 60% if the employer offers to match their contributions.
Well over half (61%) of respondents aged 15 to 24 say they are likely to take out a stakeholder pension, rising to 73% if their employer were to match their contributions. Amongst older employees, particularly the 45 to 54 age band, 54% are likely to take out a stakeholder pension if the employer matches their contribution, against only 26% if their employer only offers access.
The research also showed that 41% of employers who intend to offer a stakeholder pension scheme are prepared to make matching contributions for their staff.
Alastair Camp, managing director of medium business and agriculture at Barclays, said: “Because stakeholder pensions are simple to set up and run and are designed to cost little for savers, they meet the needs of these businesses, many of whom are also alert to the opportunity offered to contribute to their employees’ financial future.”
Adrian Boulding, Legal & General’s pensions strategy director, said: “It does not surprise me that the number of people wanting to take out a stakeholder pension would increase dramatically if the employer matches contributions. Our experience in the field is that take-up increases to around 90% - even higher than the survey figures suggest. This could well be the key to the success of stakeholder pensions.”
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