Employer-based pension schemes are seen as the safest way to save for retirement
Confidence in employer-based pension schemes has increased significantly, according to new research from the Office for National Statistics (ONS).
In its early indicator estimates from its wealth and assets survey 2012/14, the ONS found that just eight per cent of people were unaware of 'workplace pension reforms' when surveyed between April and June 2014, compared to 40 per cent between July and September 2012.
The majority, just under 40 per cent, felt that having a workplace pension was the safest option for saving for retirement, compared to property, ISAs, personal pensions, savings accounts and premium bonds.
The research also showed that people expected to have to work for longer, with 58% saying they thought they would retire between ages 65 to 69 in the period July 2012 to June 2014, up from 54% in the period July 2010 to June 2012.
However, the public remains unconfident about having enough money in retirement. Just under 60% of those surveyed said they were not confident of having enough income in retirement to maintain the standard of living they were hoping for.
Nathan Long, head of corporate pensions at Hargreaves Lansdown, said that employers should help staff understand how much they should personally save to fund their own retirement.
"Awareness with pensions is soaring with the introduction of the twin reforms of auto-enrolment and pension freedom," he said.
'Increasingly research points to people working for longer and likely to favour part-time working in their later years and employers should be mindful of these developing trends and the impact they will have to their business."
Despite the increase in public awareness, senior consultation at Barnett Waddingham, Malcolm McLean said there is still a way to go.
"There is still something of a mountain to climb before we can feel confident that the majority of the population can look forward to a financially secure retirement," he said.
"Whether the current extensive reforms to pensions both in the public and private sectors will have the capacity to improve the situation even further remains to be seen."
First published 25.06.2015
Lindsay.sharman@wilmingtonplc.com
