Employees in SMEs 'not making enough pension contribution'
Staff employed by small to medium-sized enterprises (SMEs) are not making enough of a financial contribution to their pensions, it has been claimed.
Research from Barclays Financial Planning reveals 51 per cent of SME employers are concerned about the pensions contributions of employees at their firms and are taking measures to encourage a rise.
Additionally, 19 per cent of employees at these firms are reportedly not making any contribution at all to their pension.
Stephen Ingledew, commercial director for Barclays Financial Planning, said: "The research indicates despite the pension gap being on everyone's radar, it is some way off being plugged."
He added that two-fifths of employees prefer increased wages to a better pension package, suggesting that workers will opt for increased short-term disposable income in preference to adequate pension provision.
Earlier this month, Purplecircle Consulting suggested the use of low-cost self-invested personal pensions (Sipps) as a means of building up enough savings for a full Sipp fund.
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