LONDON (Citywire) - Some 75 percent of employees think that having an occupational pension is important and 66 percent would take a lower paid job to get one. These are the findings of a survey carried out by the National Association of Pension Funds.
“This survey shows very clearly that workplace pensions are firmly planted in the minds of employees - the people who matter most,” said Joanne Segars, chief executive of the NAPF.
In the survey, respondents were asked how important it is to have a company pension. Three quarters of respondents aged 18 to 65 said it was important, 53 percent said it was very important, 22 percent said it was quite important, while 24 percent said it was not important and 1 percent did not give an answer.
Respondents were asked to choose between two jobs which are exactly the same in all respects apart from the package on offer - the first with a higher salary but no pension and the second paying a proportionately lower salary, but with a pension worth around 20,000 pounds a year.
Some 66 percent of people aged 18 to 85 said they would choose the lower paid job, believing it is worth paying more now to get a decent retirement income, 32 percent said they wanted a higher income now and would sort out a pension later and would therefore choose the job with the higher salary, while 2 percent didn’t know
The NAPF maintains that both the government and opposition are strongly in favour of the NAPF proposal for a Good Pension Quality Mark. This is supported by the survey with an overwhelming 87 percent of people aged 18 to 65 saying a quality mark would help them work out whether a pension which comes with a job is a good one.
c Citywire Financial Publishers Ltd 2007.