Pension contributions to rise, say experts

30 January 2008 / by None
A new survey has shown that nearly 65 per cent of advisers think that there will be an increase in pension contributions during the next three years.

The research, conducted by Skandia, shows that a third of the 500 respondents predict no change while just three per cent expect to see a decrease.

Some 40 per cent of schemes have recorded an increase in contributions since April 2006, with 50 per cent showing no change and two per cent seeing a decrease.

Nick Bladen, head of pensions marketing at Skandia, says: "What this data is suggesting is that the A-Day effect is far from over. More and more people are becoming aware of the opportunity offered by pensions - namely huge flexibility in investment strategy and significant tax relief."

He added that this is welcome news for the pension industry as a whole pointing out that the options currently offered by pension schemes allow contributors to reap the benefits of flexibility and single premium funding.

In related news, Skandia recently claimed that Customer Agreed Remuneration must apply to the whole market in order to provide clarity and choice for consumers.

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