Staff increasingly see
pensions as the best way to save for retirement and as the most important employee benefit employers can offer, but they have become less confident their pension will deliver, according to research by the National Association of Pension Funds (NAPF).
The research revealed that 44 per cent of employees said
pensions were the best way to save for retirement.
This was a marked rise from 35 per cent this time last year, and was more than twice the number who cited property as best (20 per cent) and almost four times the amount that chose ISAs (12 per cent).
Meanwhile four out of ten (41 per cent) thought pensions are the most important employee benefit - an increase on 31 per cent last year. Staff bonuses and flexible working were joint second at 17 per cent.
But despite this positive shift in attitudes, only a third (35 per cent) said they were confident their pension will give them enough to live on in retirement.
And the survey's Pension Confidence Index stood at +5 per cent, down from +11 per cent a year ago. Less than half of respondents (48 per cent) said they were confident about pensions, while 43 per cent said they were not.
"As we emerge from the recession, people are able to take a longer-term view on saving, and are showing more interest in workplace
pensions. Sluggish property growth and weak interest rates have also helped raise pension awareness.
"The UK is facing a crisis in saving for its old age, so it's encouraging that growing numbers see the importance of a workplace pension,” said Joanne Segars, NAPF Chief Executive.
“Ahead of the introduction of auto-enrolment into pensions in 2012, this bodes well."
"The erosion of confidence in pensions is a real concern. Without a greater belief that saving in a pension will result in a more comfortable old age, we will struggle to persuade people to save for their retirement.
"We need a simpler state pension that provides a solid foundation of basic retirement income and which lifts people off means-testing to ensure that people keep what they save. That would be a major step forward in restoring confidence in pensions."
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