Manufacturing Industry Makes the Most of Pension Benefits

People working in the manufacturing sector are more likely to join their company pension schemes than in any other industry, according to Zurich research into take-up of company pensions. The research shows that nearly three quarters of people in the manufacturing industry take up their company pension scheme, compared to just over a third in the retail and wholesale sector.

Of all the industries surveyed as part of the research:

• Workers employed in the manufacturing sector are the most likely to take up their company scheme (73%).
• Next likely to participate in a company scheme are workers in the transport and storage sector (63%), along with the health and social work industry, where around two thirds of people (63%) participate in their company pension.
• Those least likely to take advantage of the employer’s pension are the retail and wholesale industry (34%).

Zurich’s UK head of corporate pensions, Simon Foster, said: “Given that most employees are already in a company scheme, the manufacturing industry is already relatively well placed to cope with auto enrolment when it comes in next year. Other industries for which the impact may be greater should now actively be preparing for managing this process and ensuring that they have adequate funding in place.”

Of those who have joined their company schemes, Zurich’s research highlights:

• The majority of people are not confident that the state pension will be sufficient or available when they retire (52%).
• Around half of people see it as a way of getting free money from their employer and the tax man (51%).
• Half of pension holders see it as the most valuable benefit offered by an employer.

Foster said “In order to live comfortably in retirement, it’s important that people start planning their finances as early as possible. Making use of a company pension scheme means that you get free money from the tax man by way of tax relief, as well as free money from your employer who, in most cases, puts money into the pension for you.”

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