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Retirement saving high priority

Retirement saving high priority

Category: Pensions

Updated: 29/01/2014
First Published: 29/01/2014

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 It is now over 6 months old so the content may be out of date.

Saving for retirement is increasingly on consumers' minds, with automatic enrolment being quietly welcomed, according to research from the National Employment Savings Trust (Nest).

Rising from seventh place in 2011 to third on people's priority lists in 2013, consumers are turning their minds to how they are going to manage later in life.

Around 86% of consumers are now aware of automatic enrolment with only 8% currently opting out of the scheme, although this figure nearly doubles for those aged 50 and over.

Confidence in being able to save enough to sustain the lifestyle consumers would like is another story, however. Only 9% believe they will be able to save enough, compared to 14% three years ago.

Employers, meanwhile, have been finding automatic enrolment fairly challenging; being time consuming and complicated. One fifth of those that have already staged found it took over 16 months to prepare, whilst over half (55%) have had difficulty understanding the legalities.

Commenting on the findings, NEST's chief executive Tim Jones said:

"It seems to be 'so far so good' for automatic enrolment for consumers, which is welcome news, but we are only at the start of a much longer journey and it's clear there are challenges to come. For the longer term we all need to work harder to build confidence about pensions among consumers, and to make sure all age groups understand the benefits a workplace pension can bring.

"There's a clear role for all of us in helping ensure the next stages of automatic enrolment are a success, with many employers reporting that they expect help from a number of sources."

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