Attitudes to pensions in need of reform

by Gill Montia

Story link: Attitudes to pensions in need of reform

New research from the Department of Work and Pensions (DWP) suggests that almost one-third of employees in workplace pension schemes don’t know how much their employer is contributing to their pension pot.

The latest Attitudes to Pensions survey, carried out for the DWP, also reveals that in the private sector, 59% of employees do not currently contribute to a workplace pension and are therefore missing out on the extra cash that an employer would contribute.

Pensions Minister, Steve Webb, comments: “This research confirms the fact that too many people are not saving into a pension, which is why the plans we announced … to introduce automatic enrolment into workplace pensions are so vitally important.”

Last week, the Government told all UK businesses that they need to offer eligible employees a pension scheme by 2016.

The new requirements will be staged in over the four years from October 2012 and are being accompanied by the launch of a low-cost workplace pension scheme called NEST (National Employment Savings Trust), which will be open to any employer who wants to use it.

According to the Minister, the reform will mean that up to eight million more people will be saving into a pension fund, or saving more, with support from their employer.