UK - Occupational scheme members do not understand many aspects of their pensions, a survey by business adviser PKF reveals.
Its 2003 survey – carried out in conjunction with IPN’s sister magazine Professional Pensions – found that 13.75% of employees did not know what sort of pension scheme they had and only 42% were confident that they understood how much they would receive in retirement.
In addition, around 60% did not know how well their pension contributions had performed – a trend that was particularly acute in the 18-39 age range where nearly three-quarters of respondents did not know how their investments were performing.
PKF said companies needed to be more effective in how they communicated the benefits of occupational pension schemes to their members.
“The results of this survey are clear evidence that there is a lack of understanding,” it said.
However, even fewer knew what pensions benefits they would get from the state. Only 30% said they knew what they would receive.
Despite this lack of understanding about occupational pension schemes, 80% of the sample felt pension scheme provision was either “important or very important” when deciding to accept a job.
Pension provision also ranked far more highly than other benefits such as extra holidays, medical insurance, cars or childcare.
The survey asked around 1500 members of occupational pension schemes for their views.
Those surveyed work throughout the UK in companies ranging from 10 to over 10,000 employees.
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