Survey Finds UK Public Confidence in Pensions at All-Time Low
8th March 2012 16:46 - Financial Services
Just months before the Government starts automatically enrolling workers into pension plans, a survey by the National Association of Pension Funds (NAPF) has found that Britons are less confident in pensions than ever before.
In total, 54% of all employees who took part in the research are not confident in pensions compared to other ways of saving, resulting in a Confidence Index of minus 17%.
This is the most negative rating since the Index was first run in 2007. It also marks a sharp decline from minus 6% in September 2011, and plus 5% in autumn 2010.
When asked for the reasons why they have such little faith in pensions, 40% of the respondents said they do not trust the pensions industry, which marks a rise in distrust of 27% compared to October 2011. In addition, 35% said they cannot afford a pension scheme, and a further 23% said they did not trust the Government on pensions.
The NAPF concludes that this rock bottom public confidence stems from a loss of trust in the pensions industry, particularly in the areas of annuities and charges, combined with an increase of strained household incomes and stock market volatility over the past year.
Joanne Segars, NAPF Chief Executive, commented: “"People have to be sure that it pays to save. Pension charges can be fiendishly complicated and they must be made clearer.”
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