Pension income concern for 66% of Brits Go compare with our comparison table

Pension income concern for 66% of Brits

08 March 2010 / by Andy Davies

Two thirds of Brits do not believe their pension will provide them with enough money when they retire, the National Association of Pension Funds (NAPF) has revealed.

Only 34 per cent of working people are confident that their pension will provide sufficient funding for their retirement, while just over a quarter said they would be more optimistic if they were certain that they would not lose any of the money they had paid into their pension.

According to the NAPF, a further quarter said they would like a guarantee that their retirement income would not run out before they died.

However, despite a significant proportion of people showing a lack of confidence in their pension savings, 44 per cent of Brits still believe a pension is the best way to save for retirement.

This is further illustrated by the fact 38 per cent believe a pension is the most important benefit on top of salary that an employee can offer, compared to 19 per cent who thought a bonus was more important.

Meanwhile, nearly four out of five employees said would consider an employer who offered a workplace pension more favourably than one who did not.

Encouragingly, the NAPF has also found that almost one in five people plan to increase their pension contributions over the next year. However, eight per cent revealed that they intend to reduce or stop their contributions altogether in the forthcoming year.

Commenting, Nigel Peaple, director of policy at NAPF said: "It is clear that people greatly value pensions. They 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.

Recognising that a number of people are concerned that they may lose money that is paid into their pension, Mr Peaple adds: "This issue of how best to invest pensions will be examined at our Investment Conference this week."

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