Administration July 4, 2003

Britons Favor Compulsory Contributions

April 19, 2002 (PLANSPONSOR.com) - British employees increasingly favor employee contributions to company savings plans.
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Recent research by Prudential showed that close to two-thirds of those living in the UK think that employee contributions to employer-sponsored retirement savings plans should be compulsory.

But respondents don’t believe that employees should bear the full responsibility for their retirement savings plans – some 75% believe that employers should also be made to contribute.

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And only 19% of the sample said that individuals should be left to make their own retirement planning decisions and just 4% believe that the government should provide for them.

Of those supporting compulsory employee contributions

  • 15% said people should pay up to 4% of their salary,
  • while 12% thought that more than 16% of annual earnings was reasonable.

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