Confidence in Pensions 'Growing'

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Confidence in Pensions 'Growing'

By Sandra Haurant, The Guardian

February 9, 2004

Confidence in savings and pensions is finally beginning to rise, but the majority of people still do not trust the government to support them in retirement, according to a report out today.

Research from the Association of British Insurers showed that 17% of people trust the government's policies on pensions, compared with 15% in September last year. Meanwhile, 38% of people think they will have sufficient savings for their retirement, compared with 35% in September (although 59% of those questioned were "not particularly" or "not at all" confident they would have enough money).

However, an overwhelming majority said they had little or no faith in the state when it comes to pensions. Some 44% said they did not trust the government at all, while a further 36% said they had a tendency to distrust it. Only 2% said they trusted the government "a great deal".

Around 32% of people said if they were given £10,000 they would save it or invest it, but 34% said they would use it to pay off their mortgage or save for a housing deposit, while 29% would use it to repay debts. Just 3% said they would go out and spend it.

The ABI has previously estimated that Britons are saving £27bn a year less than they need to in order to have a comfortable retirement.

Joanne Segars, head of pensions and savings at the ABI, said: "This is encouraging ground for the forthcoming pensions bill to build on. The government must ensure that the measures in the bill provide a further boost to public trust, confidence and understanding in all types of pensions.

"These figures show a small but significant change in the public's attitude and levels of confidence towards pensions and savings in general.
"People are starting to think about saving for retirement, and it looks like the question 'am I doing enough?' is starting to filter through.

"This is an opportunity for the government, the savings industry and employers to build on this change in attitude and help people to meet their expectations."