Panic among British workers about the state of their pensions seems to be easing. The number of scheme members requesting their projected pension, based on their current savings plan has fallen by nine percent since last quarter. This is still 36 percent higher than the corresponding quarter in 2008.
Similarly, as equity markets claw back previous losses and talk of economic recovery increases, pension savers are displaying improved levels of confidence, as witnessed by a fall of 17 percent in the number of requests for information regarding the current pound-value of their pension pot.
Colin Hamilton, commercial director at Aon Consulting, said: “The reduction in member requests for retirement information and transfer out quotations during periods when leading stock markets exhibit substantial increases, suggests that confidence is returning.”
The tracker analyses a sample of nearly 350,000 scheme members from 35 typical UK defined contribution (DC) and defined benefit (DB) schemes to provide an insight into how the economic environment is impacting public attitude and behaviour towards pensions.
Colin added: “However, if stock market performance is dictating confidence levels among savers, this would suggest a lack of understanding of the long-term nature of pension saving. Effective member communication and education has an essential role to play in explaining the long-term nature of saving for retirement.”
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