Employees 'do not know how much pension pot is'

Close to one in three workers who are part of a company pension scheme do not know how much their employer is contributing every month, new government research has revealed.

The Department of Work and Pension's Attitudes to Pensions survey has found that more than half (59 per cent) have not even enrolled on a scheme.

In order to make up the pensions shortfall, the government this week announced that companies will be obliged to create workplace pension schemes from 2012.

Steve Webb, the pensions minister, said: "This research confirms the fact that too many people are not saving into a pension, which is why the plans we announced this week to introduce automatic enrolment into workplace pensions are so vitally important."

He added that while the amount in most pension schemes was not enough to support retirement, it would certainly supplement any post-work income.

However, business organisations have criticised the move which they believe will add to existing red tape and financial pressures faced by small firms.

In particular, the Federation of Small Businesses criticised the impact on micro-firms, which have fewer than ten employees.

Published on: November 1, 2010

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