Pension benefits - who is taking advantage? - Business Works
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Pension benefits - who is taking advantage?

Pensions - who is taking advantage P eople working in the manufacturing sector are more likely to join their company pension schemes than in any other industry, according to Zurich research into take-up of company pensions.

The research shows that nearly three quarters of people in the manufacturing industry take up their company pension scheme, compared to just over a third in the retail and wholesale sector.

Of all the industries surveyed as part of the research:

  • Workers employed in the manufacturing sector are the most likely to take up their company scheme (73%);
  • Next likely to participate in a company scheme are workers in the transport and Storage sector (63%), along with the health and social work industry where around two thirds of people (63%) participate in their company pension;
  • Those least likely to take advantage of the employer’s pension are the retail and wholesale industry (34%).

"Given that most employees are already in a company scheme, the manufacturing industry is already relatively well placed to cope with auto enrolment when it comes in next year," says Simon Foster, Zurich’s UK Head of Corporate Pensions.

"Other industries for which the impact may be greater should now actively be preparing for managing this process and ensuring that they have adequate funding in place."

Of those who have joined their company schemes, the research highlights:

  • The majority of people are not confident that the state pension will be sufficient or available when they retire (52%);
  • Around half of people see it as a way of getting free money from their employer and the tax man (51%);
  • 51% of pension holders see it as the most valuable benefit offered by an employer.

"In order to live comfortably in retirement, it’s important that people start planning their finances as early as possible," continued Simon. "Making use of a company pension scheme means that you get free money from the tax man by way of tax relief, as well as free money from your employer who, in most cases, puts money into the pension for you."

"One of the main reasons for taking up a company scheme is that people are not confident that a state pension will be sufficient or available in the future. Employers also have a massive part to play in plugging the pensions gap. Not only will providing such a valuable benefit help the employee, but it will be hugely beneficial to the employer in terms of attracting and retaining staff," concluded Simon.

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