DEPARTMENT FOR WORK
AND PENSIONS News Release (PENS-090) issued by COI News Distribution
Service. 9 December 2008
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