At this moment in time, a pension still forms the most significant part of funding lifestyle in retirement for the majority of people.
With the planned reductions to lifetime and annual allowances due to be introduced from April 2016, and possible further changes to the way in which pensions are taxed which will be announced in the 2016 Budget, it could mean that workplace pensions may become a less important workplace benefit in the future.
Currently, pensions are a great benefit to reward people as well as acquire and retain talent.
Following the introduction of the reduced lifetime and annual allowances from next year, both employers and those impacted will be faced with an issue. Employers will need to look at new ways to continue to incentivise and reward those affected to effectively replace the pension contributions they will stop. For individuals, they will need to explore suitable, and similar risk, alternative investment strategies to replace that pension.
Some 42% of respondents believe that pensions will form a less significant part of benefits in the future, according to research by Aon Hewitt.