76% of UK employers offer pension alternatives to high earners, WTW survey reveals
May 06, 2025
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More than three-quarters (76%) of surveyed UK employers with DC pension arrangements and approximately half of UK employers with open DB pension arrangements offer alternative benefit options, including cash, to employees restricted by the Annual Allowance according to a new survey by Willis Towers Watson (WTW).
The WTW Annual Allowance and Other Pension Taxes Survey 2025 received 107 responses from WTW clients. The survey indicates that many employers anticipate continuing to allow employees to opt out of participation in their workplace pension scheme, despite the recent passage of legislation abolishing the “lifetime allowance” — a mechanism that limited the total amount individuals could accumulate as pension savings before incurring tax charges.
Other notable findings from the survey included:
· Most employers with DC pension arrangements will allow eligible employees to restrict their total pension contributions to £10,000 per tax year, and 1 in 3 employers allow employees to set the level of restriction themselves.
· Most employers provide some form of support to employees to help them manage their pension savings and potential tax implications, with standard fact sheets being the most popular at 72%. Webinars were used by 36% of respondents, while 11% of respondents made individual financial advice available to employees.
Click on ‘More Information’ below to see the results of the survey:
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