53% say government’s pension reforms are ‘spot on’

More than half (53%) of respondents said the pension reforms introduced in the Budget 2014 are ‘spot on’ and ’a great shake up of our current provision’, according to research by Standard Life.

Bold-Graeme-StandardLife-2013

Its research, which surveyed 50 of Britain’s largest employers, found that more than a third (35%) thought the reforms were ’too much too soon after auto-enrolment’, while 13% felt it was ’too little too late’ and ’there is still lots to do’.

When asked which area of the Budget was of most interest, 81% of respondents cited the changes on retirement.

Only 2% were most interested in the charges cap and charges disclosure, which were announced by the Department for Work and Pensions (DWP).

Less than one in 10 (7%) expressed an interest in defined ambition/collective defined contribution (DC) pension proposals, while 5% cited an interest in the reforms around automated small pot transfers.

A further 5% of respondents were interested in independent governance committees and trustee responsibilities.

The research also found:

  • 38% of respondents think DC pensions are a key part of their rewards package.
  • 10% of respondents think providing a workplace pension is all about compliance and keeping costs down.
  • 10% of respondents think DC pension schemes will be very important in enabling staff to retire when they want.

Graeme Bold (pictured), head of workplace proposition at Standard Life, said: “It is clear the UK’s biggest employers back the government’s reform of the pensions system, which will ensure their employees are not only getting value for money but have new-found freedom to use their savings through the workplace as they see fit in retirement.

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“The key focus must be to ensure that auto-enrolment continues to be a success and that saving for retirement becomes a cultural norm. Full and appropriately targeted transparency on costs, fair charges and good governance will play a key part in achieving that social acceptance. 

“The reforms are an important first step in generating and maintaining confidence in pension savings.”