UK - A significant 85% of people lack the confidence to choose how their pension savings are invested, a poll by the National Association of Pension Funds (NAPF) has found.
The poll also found people had little faith in the ability of a new government computer system to manage their pension savings effectively, said NAPF chief executive Christine Farnish.
“If ordinary people are to be automatically enrolled into a pension savings system, then it needs to be a system they can trust and rely on,” she said.
The research suggested a widespread lack of confidence in government’s ability to set up a new computer system to manage their savings, said Farnish.
Only 16% of respondents were confident that such a system would record the amounts they had saved without errors. 51% were not confident of this.
“It also shows that only 15% of consumers feel confident enough to choose how their pensions savings are invested,” Farnish said.
Rather, four out of five people surveyed either wanted the scheme to manage investments for them, or wanted personal financial advice.
Should individuals be left to choose investment funds themselves, NAPF research suggested the majority would choose a very low yielding fund, said Farnish. “This can hardly be in the best interests of modest earners, saving for a pension over several decades.”
The NAPF had earlier put forward its alternative proposal that would see the creation of a number of Super Trusts, which NAPF claimed would offer “low cost pensions for millions of workers”.
By Damian Clarkson
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