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Confidence crisis hits pension savers

Confidence crisis hits pension savers

Category: Pensions

Updated: 10/03/2010
First Published: 10/03/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Only a third of workers believe their pension will give them enough money to fund a comfortable retirement, new research has revealed.

Despite the apparent crisis in confidence, just 17% of people who are saving into a pension said they intend to increase their contributions over the next year, the National Association of Pension Funds (NAPF) survey found.

Worryingly, 8% said they intend to reduce or stop contributions in that time.

Almost half (44%) of those surveyed still said that a pension was the best way to save for retirement, far outstripping property on 18%, and well ahead of any other form of saving.

The research also looked at what would make people more likely to save into a pension.

Just over a quarter (27%) said they would be more confident in pension saving if they were sure they would not lose any of the money paid in.

A further quarter of people (26%) stated they would like a guarantee that their pension income would not run out before they died.

"It is clear that people greatly value pensions," said
NAPF director of policy Nigel Peaple.

"They consider pensions to be the best way to save for retirement - far ahead of property - and over three quarters value an employer more if they offer a workplace pension.

"People want their pension to provide them with certainty, in particular they want to be sure they won't lose money."

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