More than two thirds of people plan to remain in a workplace pension scheme once they are automatically enrolled into it, according to research published by the Department for Work and Pensions yesterday.
The department's Attitudes to pensions survey found 70% of those questioned would 'stay in' a pension scheme if they were eligible to be auto-enrolled, while 68% thought auto-enrolment was a 'good idea'.
However, respondents also raised concerns over the complexity of pensions, with 59% saying they do not feel they know enough about pensions to decide with confidence how to save for retirement. Over a third (41%) of those with a pension said they have no idea what their income will be in retirement, rising to 79% for those currently without a pension.
Above average levels (71%) of women said they found pensions complex, with 28% saying dealing with pensions 'scared' them.
Pensions minister Steve Webb welcomed the positive assessment of auto-enrolment. 'The simple fact of being offered a company pension is a clear driver to helping people save,' he said.
'However, too many people are put off saving for their old age by a pensions system which is too complex and too few know clearly what they will get when they retire.
'We are taking the hassle out of saving in a pension through automatic enrolment, we are working with the industry to restore trust and confidence in pensions and we will reform the state pension to make it simpler and clearer to understand,' he added.
Last week, the DWP published its Reinvigorating workplace pensions strategy, which included plans to promote risk-sharing in workplace pensions, as well as increasing transparency on charges.
Malcolm McLean, a consultant at Barnett Waddingham, said: 'No-one, least of all the DWP, should be surprised that the general public find pensions complicated and difficult to comprehend.
'Constant tinkering and political interference with the system over the years have produced a virtual labyrinth of rules and regulations which very few fully understand and which are often a breeding ground for mistakes and misleading advice.
He added: 'As we enter a critical stage with the onset of auto-enrolment and plans to reinvigorate occupational pension saving being launched, more effort is clearly needed to explain pensions in a way that ordinary people can understand and can then engage with for their own long term good.'
