Pensions remain the most popular way to save for retirement, according to the latest National Association of Pension Funds (NAPF) Workplace Pensions Survey.

Of the 1,198 employees surveyed, 41% felt that pensions are the best option, with property investment coming in second (18%).

The report also reveals that the Pensions Confidence Rating has increased amongst employees from 3% to 22% during 2008.

Despite the downturn in economy, the majority of scheme members surveyed have no intention of decreasing their pension contributions. Eight out of 10 (82%) said they will not be changing the amount they put into their scheme, whilst 7% intend to increase their contributions.

NAPF chief executive, Joanne Segars, said: "The welcome boost in pensions confidence shows the traditional views of 'at least I've got my pension' has started to make a comeback. Psychologically, employees are 'ring-fencing' their pension from the other financial pressures they are facing.

"The decline in adverse publicity around the security of pensions also has had a part to play. The message that the system in the UK is one of the best protected in Europe must be getting through. The fall in house prices will have made some people reconsider their thinking about using property to fund their retirement."