Workplace Pensions Survey – May 2014
The NAPF Workplace Pension Survey tracks the opinions and attitudes of people in employment on pensions, and their expectations in retirement.
Over a quarter (28%) of consumers are now more likely to start saving or save more into a pension following the reforms announced in the Budget.
Young people are most likely (54%) group to save into a pension in the wake of the Budget. Lower income respondents also said they felt more attracted to pension saving (42%).
The proposed reforms introduce greater flexibility around how people can access their pension savings at retirement and 61% of survey respondents said they feel capable of deciding what to do with their pension savings. People were generally fairly cautious about how they plan to utilise their pension pots, with 58% preferring to receive a regular income for life rather than risk their money running out. But, when asked, one in five (19%) agreed they would take the lump sum irrespective of whether they had other savings elsewhere.
When asked how people would like to receive guidance or advice on what to do with their savings very few felt they would not need any help (14%). The most popular choice was face-to-face independent advice (29%), but respondents from lower income households were far less certain about whether they would use the service at all (39% of that group). Fewer than half (43%) were prepared to contribute towards the cost of independent advice ─ no respondent was prepared to pay more than £500 and only 3% were prepared to pay more than £200.