Around three quarters (76 per cent) of employers offer alternative cash benefits to high earners in lieu of pension contributions, according to research by WTW.
The poll, which asked 88 UK employers, found that, despite the abolition of the pensions lifetime allowance, many employers continue to offer high earners the chance to opt out of pension provision altogether.
Where employers choose to offer alternatives to pensions, cash is the most popular form, with 91 per cent of these employers offering this as an alternative to DC pensions and 72 per cent of these employers offering cash instead of DB arrangements.
Helen Perrin, head of financial planning UK at WTW, said: “Many employers have stopped short of requiring employees to make pension savings up to their annual allowance before they can benefit from cash alternatives.
“However, we are seeing employers engage with previous LTA opt-outs to encourage them to review their options.”