UK Workers Rank Pension Top Benefit, but Worry It's not Enough

March 11, 2010 (PLANSPONSOR.com) – A survey of UK workers by the National Association of Pension Funds (NAPF) finds pensions remain the most important employee benefit on top of salary that an employer can offer.

Almost four-in-ten respondents (38%) chose pensions as the most important benefit, followed by a bonus (19%) and flexible work arrangements (13%). Over three-quarters (77%) of employees said they would consider an employer who offered a workplace pension more positively than one who does not.

Despite the importance place on pensions, only a third (34%) of workers believe their pension will give them enough money in retirement, according to a press release. Just over a quarter (27%) said they would be more confident in pension saving if they were sure they would not lose any of the money paid in, and another 26% stated they would like a guarantee that their pension income would not run out before they die.

Despite current interest in allowing people early access to part of their pension, only 10% of people responded that this would make them more confident in pension saving, the press release said.

Still, 44% of respondents still said that a pension was the best way to save for retirement – far outstripping property (18%), and well ahead of any other form of saving. Of people who are saving into a pension, 17% intend to increase their contributions over the next year, while 8% intend to reduce or stop contributions, and the remainder do not intend to make any changes.

The survey was conducted by Populus among 1,248 full- and part-time employees in Great Britain ages 18-64, February 17 – 24, 2010.

Full details of the NAPF’s Workplace Pension Survey can be found at http://www.napf.co.uk/policy/research.cfm.

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