Three-quarters of surveyed U.K. employers support the targeted extension of automatic enrollment to self-employed and part-time workers and the idea that higher contributions may be necessary in the future, according to a survey from CBI and Scottish Widows.
The survey of 240 firms shows 98% of respondents recognize the business case and 95% recognize the moral case for providing competitive workplace retirement plans. Further, 74% of respondents want to see that extension to those workers earning less than £10,000 and those with multiple jobs to help save for retirement.
When asked whether employers need to make higher contributions to their plans in the future, 71% said they need to do so in order for employees to have adequate retirement income. They do not, however, believe it needs to be done now.
Forty percent of respondents believe it is employee contributions that need to be higher, 35% believe higher contributions should be made from both employers and employees and 27% believe solely employers' contributions should be higher.
Nearly all respondents, 93%, believe that businesses should be focused on engaging employees to increase voluntary contributions.
"This latest survey from the CBI and Scottish Widows reinforces our view that auto-enrollment must continue to step up and be evenly split between the employer and employee — provided of course contributions are at the correct level for the individual in question and — ideally — that those who can't afford it have the ability to reduce contributions," said Laura Myers, partner and head of defined contribution at Lane, Clark & Peacock, in an email.
Gregg McClymont, director of policy at The People's Pension and former shadow pensions minister, said in an email that he is encouraged by the survey showing respondents support changes to auto-enrollment.
"We need the next prime minister and his government to make building on the success of automatic enrollment a priority," Mr. McClymont. "This means urgently drawing up a timetable to implement the recommendations of the 2017 auto-enrollment review."