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Pension confidence rises

Pension confidence rises

Category: Pensions

Updated: 12/06/2009
First Published: 12/06/2009

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 It is now over 6 months old so the content may be out of date.

The UK public's confidence on pensions seems to be returning but more needs to be done to make workers more aware of the benefits of company schemes.

The NAPF's latest Workplace Pension Survey shows that there has been a small but noticeable increase in the public's perception of pensions. The index now stands at +7 per cent, a clear improvement on the all time low score of +1 per cent which was recorded in December.

Amongst consumers already preparing for retirement by putting money away, pensions remained the preferred method of saving, with 39 per cent favouring them, compared with property (20 per cent) and ISAs (16 per cent).

This positive trend was continued when employees were asked what the most important benefit their employer can offer was, with pensions coming ahead of bonuses, flexible hours and holiday entitlement.

However, the NAPF believes more must be done to make people aware of company pension schemes and their benefits, both to individuals and the wider economy.

Of the estimated 4.7 million employees in the UK who choose not to join a company pension scheme, six in ten are unaware of how much their employer would contribute, while almost seven in ten (66 per cent) did not check whether a scheme was available to them when they joined their place of work.

Furthermore, 45 per cent are unaware that tax relief is applied to pension contributions.

"Building knowledge will go hand in hand with building confidence," said Joanne Segars, NAPF chief executive.

is will be especially important in the run up to 2012 when millions of people will be automatically enrolled into a pension for the first time.

is vital there is a co-ordinated campaign to build understanding and confidence. It should be led by the Government, and actively supported by the pensions industry, worker representatives and business."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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