Only One In Three Confident in Pension Income

Only a third (34 per cent) of working people believe that their pension will give them enough money in retirement, according to new research from the National Association of Pension Funds.
 
The research also examined what would make people more likely to save into a pension. Just over a quarter (27 per cent) 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 per cent) stated they would like a guarantee that their pension income would not run out before they died.
 
Despite current interest in allowing people early access to part of their pension, only 10 per cent of people responded that this would make them more confident in pension saving.
 
Forty four per cent of respondents still said that a pension was the best way to save for retirement – far outstripping property on 18 per cent, and well ahead of any other form of saving.
 
“It is clear that people 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,” said NAPF Director of Policy Nigel Peaple.
 
“People want their pension to provide them with certainty, in particular they want to be sure they won’t lose money.”
 
Other key findings from the survey show:

- Over three-quarters (77 per cent) of employees said that they would consider an employer who offered a workplace pension more positively than one who does not.

- Pensions remain the most important employee benefit on top of salary that an employer can offer. 38 per cent of people now choose pensions as the most important benefit. A bonus (19 per cent) and flexible working (13 per cent) were the next 2 choices.

- Of people who are saving into a pension, 17 per cent intend to increase their contributions over the next year. This compares with 8 per cent that intend to reduce or stop contributions. The remainder do not intend to make any changes.




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