Department for Work and Pensions
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Moving to 2012 - employees welcome workplace pension reforms
Research published today showed that nearly 70 percent of employees who would be eligible for automatic enrolment saw themselves as saving through the workplace pension reforms when they are introduced in 2012.
The survey, conducted for the Department for Work and Pensions, revealed that workers were very much aware of the importance of making provision for later life and that 64 percent believed that automatic enrolment into a workplace pension with an employer contribution was an attractive option.
Welcoming the research Pensions Minister Rosie Winterton said:
"We are all living longer, healthier lives, with increasing expectation for our lifestyles in retirement. But we know that there are around seven million people not saving enough for retirement, which is why we introduced these reforms.
"More and more people are becoming aware of the need to save for later life, and appreciate that these reforms will have an important role to play in ensuring that people can look forward to the sort of retirement they have in mind."
Additional research on the attitudes of employers also showed nearly 60 percent thought the workplace pension reforms were a good idea.
Rosie Winterton added:
"I welcome this indicative research that shows a majority of employers believe the workplace pension reforms to be a good idea. I look forward to continuing to work closely with employers to make sure they have the information and help they need as we implement these reforms."
Notes to editors
1. From 2012 workers will either be automatically enrolled into their employer's workplace pension scheme or entered into the new Personal Accounts scheme, ensuring those who in the past have not had the opportunity build up any savings for retirement can now do so. This landmark piece of legislation represents a key element of Lord Turner's Pension Commission's recommendations to help more people save for retirement. This was brought into law when the Pensions Act 2008 received Royal Assent in November 2008.
2. There will be minimum contribution levels - a worker's minimum contributions to their pension of 4% will be matched by minimum contributions from their employer of 3% and 1% tax relief from the Government.
3. Auto-enrolment is designed to make it easy for individuals to participate in pension saving, helping to overcome the inertia which prevents many people from saving currently. However, individuals will be able to opt out.
4. The personal accounts scheme is being created to provide a low-cost, independent, workplace pension scheme that any employer can use. Employers will be able to choose to use the personal accounts scheme or another qualifying workplace pension.
5. The reports on individual attitudes present findings from a nationally representative quantitative survey of individuals who would be eligible for automatic enrolment under the reforms, along with qualitative findings from in-depth, follow-up interviews carried out with 60 individuals who had taken part in the quantitative survey. This research was carried out on behalf of the Department for Work and Pensions by Ipsos MORI, between July - December 2007.
6. DWP Research Report No 550 - Individuals' attitudes and likely reactions to the workplace pension reforms 2007: Report of a quantitative survey is published on 9 December 2008 by Corporate Document Services. The research was conducted on behalf of DWP by Caroline Webb, Julia Pye, Rea Robey, David Jeans and Patten Smith from Ipsos MORI.
7. DWP Research Report No 551 - Why people may decide to remain in or opt out of personal accounts: Report of a qualitative study is published on 9 December 2008 by Corporate Document Services. The research was conducted on behalf of DWP by Emily Gray, Paul Harvey and Joe Lancaster from Ipsos MORI.
8. The quantitative report is based on a nationally representative survey of 754 individuals (who would be eligible for automatic enrolment under the reforms) in Great Britain. It provides quantitative findings on individuals' attitudes and likely reactions to the workplace pension reforms.
9. The qualitative research involved 60 in-depth interviews with respondents who had taken part in the quantitative survey.
10. DWP Research Report No. 546 - "Employer attitudes and likely reactions to the workplace pension reforms 2007: Report of a quantitative survey" is published on 9 December 2008 by Corporate Document Services. The research was conducted on behalf of DWP by Catherine Grant, Alice Fitzpatrick, Polly Sinclair and Jerry-Lee Donovan from BMRB Ltd.
11. DWP Research Report No. 547 - "Understanding employers' responses to the workplace pension reforms 2007: Report of a qualitative study" is published on 9 December 2008 by Corporate Document Services. The research was conducted on behalf of DWP by Andrew Thomas and Laura Tredwell from BMRB Ltd.
12. Free summaries are available from Paul Noakes at the DWP Social Research Branch (Adelphi, 1-11 John Adam Street, London WC2N 6HT). The reports and summaries are available free on the DWP website http://www.dwp.gov.uk/asd/asd5/rrs-index.asp
13. Key findings from the quantitative survey were published in a factsheet online at http://www.dwp.gov.uk/pensionsreform/pdfs/Factsheet-employer-survey.pdf?=1234 in December 2007.
14. The quantitative survey of employers is based on a nationally representative survey of 2,399 private-sector employers across a range of sizes and industries in Great Britain. It providers quantitative findings on employers' attitudes and likely reactions to the workplace pension reforms.
15. The qualitative research with employers involved one-to-one depth interviews with 64 employers who had taken part in the quantitative survey. The respondents were selected to reflect a range of sizes, levels of pension provision and responses to the reforms.
Website: http://www.dwp.gov.uk
