Building knowledge and confidence key to improving pension saving

Findings from the fourth National Association of Pension Funds' (NAPF) Workplace Pensions Survey, show that tackling a lack of knowledge and confidence amongst those who choose not to join a company pension scheme when one is available could create a step change in improving the country's pension saving.

The findings show that for the estimated 4.7 million employees who choose not to join an available company pension:

60% are unaware how much their employer would contribute to their pension if they did join;

66% did not check whether there was a pension on offer when they were recruited; and

45% did not know they received tax relief on the contributions made to their pension.

NAPF Chief Executive, Joanne Segars, said: "With confidence in pensions remaining low - the NAPF Pensions Confidence Index stands at just +7% (a small but significant increase from December 2008's all-time low of just +1%), building knowledge will go hand in hand with building confidence.

"This will be especially important in the run-up to 2012 when millions of people will be automatically enrolled into a pension for the first time."

"It is vital there is a co-ordinated campaign to build understanding and confidence. It should be led by the Government, and actively supported by the pensions industry, worker representatives and business."

"The NAPF has been playing its part as its PENSIONSFORCE initiative offers a free, independent service for employers and people at work. It helps workers understand the importance of planning for their retirement."