Confidence in workplace pensions - More to be done

A new National Association of Pension Funds (NAPF) survey has revealed that a workplace pension is the most important company benefit an employer can offer. However, while 75% of employees believe it's important to have a pension that comes with their job, less than half (48%) have confidence in pensions when compared with other forms of retirement saving.

The survey also revealed that those employers not offering a workplace pension are missing out on a loyalty bonus from their staff. Indeed, 49% of employees in these companies would feel greater loyalty to that company if they did offer a workplace pension.

NAPF Chief Executive, Joanne Segars, said: "Today's workers still value pensions as a fundamental part of their employment package and believe they remain the best way to save for retirement. For employers there is a clear message that providing a workplace pension is rewarded by increased employee loyalty."

Given that the gap between the importance people attach to a workplace pension is at odds with their confidence, it's clearly imperative that both the Government and the industry work harder to restore a positive image.

When rated against other company benefits, men value pensions more than women, with the latter believing that flexible working arrangements are more important. This shows that for some women, the 'now factor' of meeting family commitments is a higher priority than their own retirement income.