NAPF reports increased confidence in workplace pensions
by Gill Montia
In its latest Workplace Pensions Survey, the National Association of Pension Funds (NAPF) has found that employee confidence in pensions has increased.
According to the bi-annual research, positive sentiment has risen from +3% to +22% since the beginning of 2008.
NAPF believes the shift is a result of a reduction in adverse publicity surrounding the security of pensions and an increased tendency for Britons to psychologically “ring-fence” pension contributions from other financial demands.
In addition, the downturn in the UK housing market has reduced confidence in property investment as an alternative method of funding retirement.
The analysis indicates that 41% of employees feel pensions are the best way to save for retirement, while 18% believe property is the best option.
Eight-two per cent of scheme members questioned said they have no intention of decreasing their pension contributions, despite the prospect of a downturn in the economy, and 7% said they intend to increase their contributions.
NAPF chief executive, Joanne Segars, says there remains a group of employees where more needs to be done to instil confidence in pensions and that employers, the pensions sector and the Government need to continue to promote the virtues of the workplace pension.