For immediate release: Wednesday 6 July 2016
One in five (22%) 18 – 30 year olds don’t believe there will be a state pension when they retire according to new research* from workplace pension provider NOW: Pensions.
When asked about the new flat-rate, single tier state pension, over half (58%) admitted they had absolutely no idea how much it was and only 12% knew the exact amount.
When told that the new flat rate state pension would pay £155.65 a week, two fifths (41%) don’t think this will be enough to retire on .Only 17% thought this would be enough to be sure of a comfortable retirement. Despite this, 34% say they aren’t currently paying into a workplace pension. Of those that are paying in, only 8% know both the percentage they are paying in and the amount in monetary terms.
When asked about the best ways to save for retirement, a quarter (26%) of 18-30 year olds say they “don’t know”, with 10% thinking that putting money in a bank account is the best way. The Lifetime ISA, due to launch next year, was one of the least popular options with only 5% thinking it’s the best way to save for retirement.
Morten Nilsson, CEO of NOW: Pensions said: “Younger generations are pessimistic about the future prospects for the state pension but despite this many are taking a relaxed approach to their personal pension saving.
“Auto enrolment will bring a much larger proportion of the younger generation into workplace pensions allowing many more to take control of their retirement saving helping to protect themselves against an uncertain future.”
Research previously conducted by NOW: Pensions with 100 cross party MPs revealed nearly one in six (15%) MPs don’t expect there to be a State Pension 30 years from now, or if there is one, it will be at a considerably lower level.
To explain the benefits of remaining in a workplace pension, NOW: Pensions went undercover in a fried chicken shop to target those intending to opt out. To view the video click here.
For further information:
Tel: 0203 640 9075
Tel: 0207 566 9760
Notes to editors
*Research conducted by Opinium online with 1,000 UK adults aged 18-30 in May 2016.
**YouGov conducted online interviews with a representative sample of 100 MPs (41 Conservative, 52 Labour, 6 Liberal Democrat and 1 other) between 11th November and 25th November 2014.
NOW: Pensions www.nowpensions.com @nowpensions
NOW: Pensions is an independent, multi-employer trust serving thousands of employers and hundreds of thousands of employees from a wide range of sectors
A subsidiary of one of Europe’s largest pension funds, Danish pension scheme ATP, NOW: Pensions offers a simple and cost effective workplace pension solution direct to employers and via advisers and the payroll sector.
In April 2013, NOW: Pensions became the first master trust to attain the NAPF’s new PQM Ready Standard. The benchmark shows employers that NOW: Pensions is a well governed pension scheme with low charges and good member communications.
In January 2015, NOW: Pensions achieved independent assurance of scheme quality in accordance with the new master trust assurance framework (AAF02/07) introduced by The Pensions Regulator (TPR) in conjunction with the Institute of Chartered Accountants in England and Wales (ICAEW).
The NOW: Pension Trustee Directors, whose role is to safeguard the interests of members, comprises well-known industry figures with different areas of expertise:
- Jocelyn Blackwell, founding partner Dunnett Shaw
- Christopher Daykin, former Government Actuary
- John Monks, member of House of Lords and former General Secretary of ETUC and TUC
- Win Robbins, former Head of European Fixed Income at Barclays Global Investors
- Nigel Waterson, former Shadow Pensions Minister
Employee charges are just £1.50 per month administration charge (reduced administration charge of £0.30 – £1.00 to be applied during auto enrolment phasing for lower earners) plus a 0.3% annual product investment management charge, with no hidden charges.