Average DC pension contribution up to 16.5 per cent

The average maximum contribution that large employers are making to defined contribution (DC) pensions is continuing to increase, according to a survey of FTSE-100 companies by Towers Watson.

The average top rate of contribution - available if employees take full advantage of “matching contributions” from their employer – is now 16.5 per cent of salary, up from 15.3 per cent last year and from 13 per cent six years ago. This year’s figure is made up of an average maximum employer contribution of 10.6 per cent and an employee contribution of 5.9 per cent.