Following the UK government's recent summit on pensions reform the Association of British Insurers (ABI) has published its latest research on consumer pension preferences.
The research entitled ‘Personal Accounts: What Consumers Want’ found that 65% of respondents believed that employers should be required to contribute to the new personal accounts to encourage individuals to save for their retirement, while 12% felt that employers should not be compelled to contribute.
The trade association also discovered that 70% want their personal account to ‘be run by a well-established company with a good brand name and reputation’.
A massive 80% want some choice over who handles their personal account, with an option to transfer their account to different company if they are unsatisfied with the service.
It seems more people fear for the safety of their savings under an NPSS-style model than in a pension industry model (60% versus 47%).
The summit showed a broad consensus in favor of reform. But while we debate the details of the government’s proposals for new private personal accounts, we need to keep our eyes on the bigger picture, said Chris Kenny, ABI’s director of life and pensions.
We need all the pieces of the jigsaw to fit together properly – the new accounts, the basic state pension and existing private pensions. Unless they do, we won’t achieve the overall result of more people saving more for their retirement.
Our latest research shows support for automatic enrolment into existing good occupational schemes or the new personal accounts. It also shows that most people want the benefits which the industry’s market-based proposals would bring, rather than a government-run system, he added.