Half of public have lost confidence in their pensions: UK report
Published 20/09/2011 | 08:53
PUBLIC confidence in pensions has hit a record low in the wake of the financial crisis, according to a new UK report.
Half of Britons are not confident about pensions compared to other ways of saving, a survey of 900 workers by the National Association of Pension Funds (NAPF) found.
The study also showed that six out of 10 people were not confident that their pension will give them enough money to live on in retirement.
Joanne Segars, chief executive of the NAPF, said: "Confidence in pensions has slumped at a time when it needs to be growing. It's worrying that from next year millions of people will be auto-enrolled into a savings vehicle they have so little faith in.
"Politicians have to boost confidence in pensions, or people will simply opt out. We need a pension framework that the public can believe in and rely on.
"We urge the (British) Government to do more to fulfil its own pledge to reinvigorate pensions. It must get on with reforming the state pension by setting a simpler, single-tier system. This would set a clear foundation for retirement on which people can build their workplace pension and savings."
The NAPF said the economic downturn had eroded faith in pensions.
Westminster Minister for Pensions Steve Webb said: "We entirely agree that more needs to be done to boost confidence in pensions.
"We're working on plans to simplify the state pension - providing a firm foundation on which to save ahead of the introduction of automatic enrolment.
"And we're introducing NEST, a low-charge, good-value scheme that will be a real benefit to savers on a low income, alongside a range of other measures that will ensure good value for money.
"Workplace pensions are one of the few ways of saving that come with an employer contribution - a major advantage of saving in this way."