Confidence in pensions at an all-time low

Pension wordsearch

Public confidence in pensions has hit a record low amid the ongoing economic uncertainty, according to the National Association of Pension Funds (NAPF).

48% of working adults are not confident in pensions, according to the research. This compares to 42% saying they are confident in the vehicles, resulting in a pensions confidence index of -6%. This represents the first dip into negative territory in the index's four-year history.

NAPF also cites low consumer confidence and recent sharp stockmarket falls as drivers behind the negative confidence in pensions.

The research also showed that almost 60% are not confident their pension will provide for them through retirement.

1.2 million people abandon pension contributions

Confidence boost

Joanne Segars, chief executive of NAPF, says: "It's worrying that from next year millions of people will be auto-enrolled into a savings vehicle they have so little faith in. Politicians have to boost confidence in pensions, or people will simply opt out. We need a pension framework that the public can believe in and rely on," she comments.

She highlights that the recent economic downturn has 'eroded faith' in the savings vehicles, with the recent stockmarket falls putting many people off contributing to one.

She adds: "Household incomes are very tightly squeezed and, with bills to pay, pension outlays can seem like the weakest link. There's also a perception that the goalposts are constantly being moved, so the government must stress the importance of saving."

Are you saving for your retirement or have you too lost faith in the pension system? Share your thoughts.

This article was written for our sister website Money Observer

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Its all very well for Joanne Segars to say that confidence is at an all time low, but what is NAPF doing about it ? AND what are they presurising the Government to do about it.?...... Nothing !!! I guess, as its easier to moan

I could solve the pension saving problem easily. Just throw open the pension scheme for ex Members of Parliament to the rest of the population. You would see a huge influx of new members keen on saving for their retirement.

What do you expect when annuities are a total rip off to finance excessive salaries and bonuses in the poorly performing financial sector

Pensions are a scam and a sham. The government and the financial service regulators should be ashamed of their impotence in protecting savers from the avarice of financial institutions who exploit the gulible belief of the saver in fairness, honesty and protection.

Pensions seem a wheeze to give our money to the City boys to play with - but the returns are poor given the risks and poor returns. It's depressing seeing how much is needed to fund a not very comfortable retirement...

Is it any wonder that people have little faith in pension funds after the Equitable Life debacle, raids by the Blair/Brown gang and annuity rates at an all time low?