Potential take up
[ch 4: page 47]Take up of Defined Ambition pensions of any kind will depend on how enthusiastic employers, trade unions and the pensions industry are about their advantages. A survey by the Association of Consulting Actuaries (ACA) in November 2013 found support for some of the principal ideas outlined by the government. However, smaller employers said scheme membership and pension contributions would be significantly higher if defined contribution schemes secured a guaranteed pension income building up year-by-year.
Six out of 10 employers said they thought there would be a significant difference in the number of employees who would consider joining (or staying in) a defined contribution scheme or who would pay higher contributions if the qualifying default fund secured a guaranteed pension income building up year by year.
Andrew Vaughan, chair of the Association of Consulting Actuaries who also chaired the government’s DA Industry Working Group described the government’s proposals as addressing an “unfinished agenda”, providing a way forward towards both reshaping and reinvigorating workplace pensions”.