Employee savings schemes 'still popular'

Workers are still looking to access the best savings interest rates available on the market through employee schemes, despite the recent market turmoil.

A survey conducted by ifs ProShare found that the number of employees investing in Save As You Earn share schemes increased by five per cent in 2010, to more than 1.4 million.

However, the average amount of money being invested into SAYE schemes in the UK has decreased from £107 in 2009 to £101 in 2010.

John Collison, head of ifs ProShare said: "This year's ifs ProShare survey shows that despite the market turmoil in recent years, employees remain committed to this tax efficient, low risk method of saving."

He explained that the savings schemes also boost loyalty to a firm as the employees are aware that their work will have an impact on the value of their shares and therefore the amount of money they save during their time with the organisation.

Tom McPhail, head of pensions research at Hargreaves Lansdown, said that individuals, employers and the government could all be accused of failing to make adequate saving provisions for pensions.
 

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2011-08-11 14:47:34 © Moneyextra.com