Roadblocks to setting up a pension plan

Organizations that offer an employee pension plan are generally satisfied with it. Though only 3% of employers said a plan had no advantages, 17% stated that offering such a plan poses no inconvenience. So what factors hamper the decision to set up a pension plan?

The negative impact of cost

According to employers that offer a pension plan, cost is the plan's major inconvenience (38%). This is in keeping with the fact that most believe that financial problems are a hindrance when deciding whether to set up a pension plan.

This view is shared by employers that do not offer a plan. Sixty-four percent of them stated that cost is why their organization does not offer a pension plan.

Factors that affect the decision to set up a pension plan
 

Factors explaining the absence of a pension plan

Employer interest

The interest shown by employers as well as by employees also plays a key role in the decision to set up a pension plan. Nearly a third of employers that do not offer a plan said they would not, under any circumstances, consider such a request by their employees.

Employee interest

Similarly, only 5% of employers without a pension plan said employees had requested such a benefit. Some mentioned that employee interest would be sufficient for them to take action. Some employers even said that they had thought about offering their employees a pension plan but had dropped the idea because of low employee interest. Around a quarter of pension plans are set up either at the initiative of employees (12%) or as part of talks surrounding a labour agreement (12%).