View more on these topics

Smaller companies are switching over to GPPs

Group personal pensions are now the preferred type for firms employing up to 250 people, according to the latest Association of Consulting Actuaries survey.

The survey looked at pension trends in firms employing 250 people or less and found that 90 per cent of these firms will have reviewed their pension scheme arrangements over the last two years.

The GPP is now the most popular type of arrangement, with 44 per cent of firms offering it in addition to alternative pension arrangements, and 25 per cent only offering a GPP. The average combined employer and employee contributions are 8.6 per cent into this scheme.

Stakeholder schemes have been established by 37 per cent of firms either alongside other arrangements or as stand-alone schemes. Forty-four per cent of these schemes are not getting an employer contribution and the average combined employer and employee contributions are just 4.8 per cent of earnings into the schemes.

Only 36 per cent of defined-benefit schemes, offered by 29 per cent of firms, are open to new members, but combined employer and employee contributions into defined-benefit schemes are up by 2.1 per cent on a year ago to 21 per cent of earnings.

The survey shows that a few firms are increasing employer contributions marginally into defined-contribution arrangements (usually by 1 per cent or less), but few employees are increasing contributions and some are reducing them.

ACA chairman Gordon Pollock says: “Smaller firms represent more than half of the UK in terms of employment and business turnover, so it is important that we monitor what is going on in pension terms. The trend decline in defined-benefit mirrors what has gone on in larger firms, where they were always more prevalent. However, it is encouraging how many smaller firms and their employees are keeping these arrangements going.”

Recommended

House prices still increasing but at a slower rate

House price rises are continuing to ease, says Halifax&#39s monthly house price index, with a 1 per cent rise in November. This is down from October&#39s increase of 1.4 per cent and November 2002&#39s increase of 1.9 per cent. Halifax says annual house price inflation now stands at 14.1 per cent, down from 16.7 per […]

Borrowers do not understand long-term risk says Miles

Mortgage borrowers attach much more weight to the initial monthly repayments they will have to make rather than the overall cost of their loan over its entire term, Professor David Miles has concluded in his interim report published by the Treasury today. The Miles Review of the UK Mortgage Market says that borrowers have a […]

&#39Pensions have inconsistent approach to managing risk&#39

An actuarial analysis has found little correlation between funding levels of company pension schemes and the level of equity investment. Consultancy Watson Wyatt analysed the schemes of companies in the FTSE 350 index and found only a weak correlation between high funding levels and the amount put into riskier investments. Watson Wyatt says it might […]

Surprise finding as advisers back services from networks

Problems with product providers and the regulator place a much greater burden on IFA businesses than problems with networks. The results of Money Marketing&#39s 1,000 broker survey in conjunction with H2B shows the biggest issue for network members is cost, with 33 per cent of 394 members saying it is a big problem, 32 per […]

The Natixis Solution: H2O MultiReturns Fund

A product designed to bring some unique attributes to the crowded absolute return global macro space With diversification and risk management top of investors’ wish lists when it comes to alternatives, step forward the H2O MultiReturns Fund. H2O Asset Management is an independent boutique backed by Natixis Global Asset Management and has a 14-year track […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com