Despite an increase in pension scheme membership, recent data suggests that FTSE 100 companies paid almost £2bn less to employee pension schemes in 2013.
In a report released by LCP, data shows that FTSE 100 employers finally got a break after many years of consistent cost increases. Thirty-eight of the companies, however, did say they added additional security to their pensions schemes that came in the form of guarantees, pledges or even charges over assets. 
Reforms announced in this year’s Budget are allegedly already having an impact on the UK’s pensions outlook. Human resource experts explain that this is being predicted long before the changes take full effect in April 2015.
Some of the major reforms include removing the obligation to buy an annuity, with savers in defined contribution schemes given full flexibility in deciding how to draw funds. Additionally, those in defined benefit schemes have the ability to transfer their benefits to a defined contribution scheme. HR experts firmly believe that this option encourages great pension savings.
Ultimately, the 2014 Budget makes retirement-saving plans appear more attractive for individuals. “Economic growth brings investment opportunities for pension schemes and their sponsors.”
The government still has quite a bit of work ahead of them before the reforms become active. It still has to implement the free guidance for all defined contribution scheme members, but even with the amount of work ahead, HR experts are extremely optimistic.