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Workers defy recession by boosting pensions

One in five workers has increased the amount they contribute to their defined contribution pension since last year while only 5 per cent of people have cut back their payments.

Meanwhile, 42 per cent have made no alterations to how much they contribute despite the recession.

According to research by Aon Consulting, workers are nearly four times as likely to have increased their contributions than to have decreased them, suggesting that many consider sufficient pension saving a priority.

Of the 18 per cent who have increased payments only 2 per cent have done so by under £10 per month.

Nine per cent have increased payments by more than £50 per month in the past year, with 2 per cent of workers improving contributions by more than £200 per month despite the current economic conditions.

Aon Consulting principle Helen Dowsey says: “These findings are encouraging news as they show that for a significant number of people, saving for a pension is sacrosanct despite the recession.

“With some employers less able to contribute as generously as in the past, many individuals have taken it upon themselves to make up the shortfall. Aon would encourage all employees to carefully consider the amount they pay into their pensions and review this on a regular basis.”

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This guide from Johnson Fleming will take you through the required communication and also give ideas for additional actions that will ensure your auto-enrolment project is a success. As well as highlighting what is required from a system to ensure it is up to the tasks, an overview of the following is also provided: data validation; data categorisation; employee communication; opt-in process; opt-out process; produce contribution schedule; contribution reconciliation process; upload of member data to pension provider; upload contribution to pension provider; manage salary sacrifice process; enrolment process; re-enrolment process; and management of increased employee queries.

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