Partner Article

North East workers don't believe in pensions

Nearly three quarters (79%) of people in the North East do not believe that pensions are a reliable way of saving for their retirement, according to research commissioned by PricewaterhouseCoopers.

The research is published following on-going news that record deficits have been reported for FTSE 100 defined benefit pension schemes.

Ian Lithgow, North East pensions director, PwC, Newcastle, said: “At the same time that companies are grappling with how to repair past pension deficits and carrying out major reviews of their future pension provision, it appears that employees do not necessarily value or trust pensions as a savings opportunity in the first place.

“This is a crazy situation for employers - pensions can still be an effective way of saving for retirement for many people but a reality check for all parties is needed. Employers need to reconsider the role and value of pensions as part of the employment deal, while employees have to act to avoid a very low income retirement.”

The survey of over 2,000 people found that women are slightly less trusting than men – with about a quarter of females (28%) saying they have faith in pensions compared with a third (33%) of males. Younger people are more positive than their older counterparts. Of the 18-34 year-old respondents, 38% said, yes, they do have trust in pensions while just 26% of 35-54 year-olds and 28% of those aged 55 and over agreed.

This was posted in Bdaily's Members' News section by Ruth Mitchell .