Confidence in pensions returning

There has been a small but important improvement in employee confidence in pensions according to the fourth National Association of Pension Funds (NAPF) Workplace Pensions Survey.

Over the past 12 months, the NAPF Pensions Confidence Index has risen from +3% to +7%, and is up from a low of just +1% in December 2008.

Alongside the increase in confidence, employees continue to consider pensions to be the most important benefit their employer can offer on top of their basic salary - 34%, ahead of bonuses and holidays. By comparison, flexible working and bonuses had declined in popularity.

Nevertheless, rebuilding confidence in pensions must remain a priority for 2009, the NAPF warned.

NAPF Chief Executive, Joanne Segars, said: "Confidence in pensions is better than it was a year ago. But the current economic environment means that whilst employee confidence in pensions remains positive, it is also very fragile.

"No matter how long and deep the recession, we still need to provide for old age. We can do that most effectively if working people are confident about pensions. That is why we urgently need a national campaign led by Government and actively supported by the pensions industry, worker representatives and business to rebuild confidence in pensions."