NI lags behind UK in designating stakeholder pensions

Only two thirds of Northern Ireland businesses have designated a stakeholder pension provider compared with the UK average of 85 per cent a new report shows.

Research just published from the Abbey National shows only 68 per cent of Northern Ireland businesses have designated a stakeholder pension provider, with only 16 per cent of employer’s contributing compared with 32 per cent in the UK.

In Northern Ireland, 14 per cent of small firms (5-50 employees) are planning to contribute to contribute to stakeholder pensions compared with the UK average of 27 per cent.

About the same number, 18 per cent, of larger firms (50+ employees) are planning to contribute, compared with 37 per cent in the rest of the UK.

With only days to go until the October 8 deadline for designating a stakeholder pension provider, Abbey National’s research shows that most businesses required to - will meet the deadline. 85 per cent of UK businesses have already designated a provider. Of those who have not yet actually designated, 96 per cent will have done so by the deadline thereby avoiding a fine of up to £50,000.

Steve Conley, Group Development Manager for Pensions at Abbey National said: “It is encouraging that so many businesses have chosen a provider ahead of the deadline. It is also interesting to see how many employers will contribute, as this has a big effect on how many staff join the stakeholder pension scheme. In general, there is a 20 per cent take-up where an employer does not contribute, but a 60 per cent where the employer does contribute.”

“Less than a fifth of Northern Ireland businesses are planning to contribute but hopefully more companies will decide to contribute, as, ultimately, the success of the scheme will depend on this.” (AMcE)