UK - Only 44% of adults have heard of the government's Pensions Credit initiative, a survey has found.
The B&CE Benefit Schemes’ survey of 983 workers also found that of the 44% who had heard of Pensions Credit, more than half (54%) did not know what it was or who it was aimed at.
A further 61% felt that the credit penalised people who had decided to save for retirement, while 77% believed some people would not save for retirement because they believed state benefits would provide them with a minimum level of income at pensionable age.
The findings follow claims by the department for work and pensions that the new system was benefiting more pensioners than the old minimum income guarantee system.
B&CE deputy chief executive John Jory said the initiative did not tackle the root of the problem in terms of effectively encouraging those on lower to middle incomes to save.
He said: “We believe in the government’s intention to target lower-to-middle income groups of pensioners with Pensions Credit.
“We do not agree, however, that it is a long-term solution to the problem of retirement saving in this country.
“In our view the answer lies in forming an effective partnership between employers, employees and the government.”
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.