18 October 2007 – Trust and confidence in pensions and pension providers
Findings are published today from a survey commissioned by the Department for Work and Pensions (DWP) looking at levels of trust and confidence in pensions and pension providers. DWP placed the survey questions on a national face-to-face omnibus survey of 1,500 members of the public who were not retired. The survey was carried out by an independent research organisation in May 2007.
Key findings from the survey show that:
- Half of respondents agreed that ‘putting money into a pension is the most secure way of saving for your retirement’. A quarter disagreed and a further quarter were not sure.
- Respondents were asked how much they trusted each of four organisations to ‘act in your best interests’ when thinking about pensions they had, or might have in the future. Employers and a non-profit independent organisation were most trusted, with the financial services industry and the Government less trusted. About a third of respondents said they would neither trust nor distrust each organisation.
- We also asked respondents how much they trusted the same four organisations to ‘make the most of your money’, again when thinking about pensions they had or might have in the future. The pattern of responses for the four organisations was very similar to those above for acting ‘in your best interests’.
- Recent news stories about pensions were the most important influence on trust and distrust, chosen by three in ten respondents in both cases.
- An experience a friend or relative had with pensions (chosen by 26 per cent) was almost as important an influence on trust as recent news stories about pensions. In addition, a personal experience with pensions was chosen by 17 per cent.
- Apart from recent news stories about pensions, chosen by 31 per cent,
influences on distrust were more evenly divided among the following options:
- a personal experience with pensions (10 per cent)
- a personal experience with another savings product (11 per cent)
- an experience a friend or relative had with pensions (12 per cent)
- an experience a friend or relative had with another savings product (12 per cent).
Notes to Editors
- The DWP research summary ‘Trust and confidence in pensions and pension providers’ is published on 18 October 2007 at http://www.dwp.gov.uk/asd/asd5/summ2007-2008/TrustandConfidenceinPensions.pdf
- The Government’s proposals for personal accounts and automatic enrolment are outlined in the December 2006 White Paper “Personal accounts: a new way to save”. Copies can be obtained from The Stationery Office or downloaded from DWP’s website at www.dwp.gov.uk/pensionsreform
- The Government published its response to the consultation on the Personal Accounts White Paper in June 2007. A summary can be downloaded from the DWP website at: http://www.dwp.gov.uk/pensionsreform/pdfs/PersonalAccountsConsultationResponseJune2007.pdf
- Under the Government’s pension reform proposals eligible employees will be automatically enrolled into a qualifying workplace pension scheme, or a system of personal accounts which will be administered by an independent board.
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