The inaugural Joint Institute Pensions Survey examines, from the point of view of HR and pension professionals, what changes need to take place in order to produce positive pension outcomes for employers and employees. The survey examines views towards the strategic aims of automatic enrolment, pension saving, tax-relief, contribution rates, compulsion and financial education.
Almost half of respondents to the joint CIPD and Pensions Management Institute survey (46%) do not believe that auto-enrolment will deliver the Pension Commission’s existing target of 15-18% of earnings for a median earner at the point of retirement, with 30% unsure of whether this target is achievable. Of those who do believe that auto-enrolment will deliver the Commission’s target, over half (55%) stated that, when added to the new flat-rate pension, this will be an insufficient amount for employees to retire on.
Other notable findings include:
- 61% believe the Government should consider compulsion to make sure all employees benefit from retirement
- a majority of respondents want employer auto-enrolment contributions to increase
- financial education should start earlier and begin in the classroom in order to improve pension outcomes
- complexity needs to be removed from pensions in order to restore public trust in pensions
- 70% favour further reform of tax-relief on pension savings
- over half (53%) believe that the Government should introduce a cap on charges for defined contribution workplace pension schemes of 0.75% or lower, and 29% favoured charges above this level.
Overall the survey highlights that, at present, current provisions and policies to encourage sustainable and adequate saving for retirement may need to be re-examined by Government and industry if a culture of sufficient pension saving amongst employees is to be fully achieved