Employee confidence in pensions has improved since the end of last year, when the economy went into recession, according to the National Association of Pension Funds (NAPF).
Confidence stood at 11% at the end of September this year, up from 7% in March and its low point of 1% at the end of 2008, the NAPF’s Pensions Confidence Index shows. The index measures the difference between those employees confident and not confident in pensions.
Despite the recession and the additional pressures on people’s finances, pensions remain a priority for employees. Nearly two in five (39%) rates pensions better than any other form of savings for retirement, including property.†
More than eight out of ten (84%) say they will continue to save into a pension at work, while 7% will increase their contributions.
Pensions also continue to be the most popular employee benefit, beating bonuses, flexible working and generous holiday allowances.
NAPF chief executive, Joanne Segars, said: “These are really positive and welcome findings and show just how much workplace pensions matter to people.
“At our conference this week we will send a very clear message to politicians that they need to take pensions seriously. Without good quality workplace pensions, millions of people would be worse off in retirement.
“We need long-term commitment and measures from whichever government is in power after the General Election to create an environment where it is easier for employers to provide pensions and for employees to save in them.”
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