High levels of interest shown in personal accounts

Recent research from Legal & General into people’s attitudes towards personal accounts has revealed that nearly half would choose to stay in these accounts when they are introduced in 2012.

Only a third of respondents said they would choose to opt out whilst one in five simply didn’t know.

Adrian Boulding, Wealth Policy Director said: “These results are very encouraging, especially when you consider how early on the Government is in its communication strategy for personal accounts. There clearly is an appetite for the scheme but also a need for an ongoing education programme – a lot of people answered ‘don’t know’ to questions. The Government still has a job to do in informing people as to how personal accounts work and how they will benefit individuals.

“Companies are gearing up for 2012, the benefits of the scheme need to be communicated now if individuals are to be in the best position to make informed choices. We would fully support any Government communications initiatives around the introduction of personal accounts.

The research was carried out as part of Legal & General’s regular MoneyMood survey. Some other interesting trends emerged, particularly among different age groups. For example when asked the question “With this information in mind and assuming you will be working when the new scheme is introduced, are you likely to stay in the scheme or opt out of it?” 54 per cent of 16-24 year olds said they would remain in the new pension scheme. When asked the same question, less than 10 per cent of 55-64 year olds said they would stay in the scheme. Response was strongest among respondents for whom pensions have typically not been a priority, for example younger people and lower paid people. Adrian added: “This is good news as it could indicate that Personal Accounts will prove complementary to existing pension markets.”