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Pension confidence returns to employees

15 October 2009 / by Rachael Stiles

More employees have confidence in pensions than they did when the UK fell into a recession at the end of 2008, according to the latest Work Place Pensions Survey from the National Association of Pension Funds.

The index, which measures the difference between those feeling confident or unconfident about work pensions, shows that since its low point of +1 per cent at the end of last year, confidence rose to +7 per cent in March, and stood at +11 per cent by the end of September.

While reports suggest that pension contributions have fallen in line with employees' incomes and confidence, pensions remain a priority for employees, the NAPF claims, with 39 per cent rating a pension as the best way of saving for retirement, above property, savings and investment.

Employees also rate pensions as the most important benefit at work, above bonuses, flexible working hours and generous annual leave. 

The vast majority of employees – 84 per cent – said that they will continue to save into a work pension, and seven per cent intend to increase their pension contributions.

Joanne Segars, NAPF Chief Executive, said that the index's findings are "really positive and welcome" and they "show just how much workplace pensions matter to people."

At the NAPF annual conference this week, it will send a message to politicians that "they need to take pensions seriously," Ms Segars continued. "Without good quality workplace pensions, millions of people would be worse off in retirement.

"We need long-term commitment and measures from whichever Government is in power after the General Election to create an environment where it is easier for employers to provide pensions and for employees to save in them."

The NAPF has recently launched the Pension Quality Mark, aimed at raising standards and encouraging more employees to join their employers' pension schemes.

© Fair Investment Company Ltd