Saving for the future
Pensions With employers having to auto enrol their employees into a pension scheme, the survey asked what percentage of employees continue in the scheme. The results showed that over 82% of employees chose not to opt out of the scheme. The most popular arrangement method was via salary sacrifice, with 47% of respondents advising this was how their pensions were processed. The National Insurance (NI) advantages bring additional saving for both employers and employees and are likely the reason for this adoption rate. For those who currently do not operate a salary sacrifice scheme, the CIPP would encourage employers to explore the reasons why. NI savings could be had by both employees and employers, which may encourage those who opt out to continue with the contributions. However, the CIPP recognise that obstacles with National Minimum Wage (NMW) are a consideration when introducing this type of scheme.
Pension arrangement type
Net Pay Arrangement (NPA)
Salary Sacrifice Arrangement
Relief at Source (RAS)
Salary Sacrifice Arrangement
Net Pay Arrangement (NPA)
Relief at Source (RAS)
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