More than half (53%) of respondents said the pension reforms introduced in the Budget 2014 are ‘spot on’ and ’a great shake up of our current provision’, according to research by Standard Life.
Its research, which surveyed 50 of Britain’s largest employers, found that more than a third (35%) thought the reforms were ’too much too soon after auto-enrolment’, while 13% felt it was ’too little too late’ and ’there is still lots to do’.
When asked which area of the Budget was of most interest, 81% of respondents cited the changes on retirement.
Only 2% were most interested in the charges cap and charges disclosure, which were announced by the Department for Work and Pensions (DWP).
Less than one in 10 (7%) expressed an interest in defined ambition/collective defined contribution (DC) pension proposals, while 5% cited an interest in the reforms around automated small pot transfers.
A further 5% of respondents were interested in independent governance committees and trustee responsibilities.
The research also found:
- 38% of respondents think DC pensions are a key part of their rewards package.
- 10% of respondents think providing a workplace pension is all about compliance and keeping costs down.
- 10% of respondents think DC pension schemes will be very important in enabling staff to retire when they want.
Graeme Bold (pictured), head of workplace proposition at Standard Life, said: “It is clear the UK’s biggest employers back the government’s reform of the pensions system, which will ensure their employees are not only getting value for money but have new-found freedom to use their savings through the workplace as they see fit in retirement.
“The key focus must be to ensure that auto-enrolment continues to be a success and that saving for retirement becomes a cultural norm. Full and appropriately targeted transparency on costs, fair charges and good governance will play a key part in achieving that social acceptance.
“The reforms are an important first step in generating and maintaining confidence in pension savings.”