More participants in U.K. defined contribution plans have reduced or suspended their contributions than employers have, a survey of 330 companies by investment consultant Punter Southall shows.
Employees at 25% of companies had reduced or suspended their contributions to their defined contribution plans in calendar year 2009, while just 10% of companies had reduced the employer contribution, according to the survey results. The survey also found that 94% of companies use a DC plan as their primary retirement savings plan, and 92% of company executives believe that the responsibility to save rests primarily on employees.
“In some respects that's exactly where (responsibility) should be directed,” Damian Stancombe, principal and head of corporate DC at Punter Southall, said in an interview. “(Employers) are doing their bit. What we're disappointed with is government isn't doing its bit.”