Following the general election, there is new hope that the necessary reforms to increase minimum auto-enrolment (AE) contributions will be enacted, but this remains far from guaranteed.

In the absence of forthcoming policy intervention, we must ask ourselves, as employers, whether we are doing enough to address the adequacy problem on our own. Many employers have already grasped the adequacy nettle in offering enhanced contribution levels.

The PLSA’s Pension Quality Mark (PQM) champions these organisations, recognising excellence in employer provision and higher total contributions.

To meet the PQM standards, employers must offer all employees a 12 per cent pension contribution (with at least 6 per cent coming from the employer).

Employers offering 15 per cent contributions can also qualify for a PQM Plus accreditation. The best and most responsible employers recognise that financially secure employees are happy employees.

The PQM highlights those schemes that are really pushing to boost contributions.

In terms of saver outcomes, the case for AE reform is universally accepted. But, with a challenging economy and a squeeze on corporate and household finances, some question whether now is the right time to implement a timetable for change.

All of us with an interest in helping people achieve a better income in retirement must work to demonstrate that it is.

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