· News

Lack of employee confidence in final-salary pensions shows their misunderstanding

Less than half (43%) of employees think their pension is safe and a quarter do not have a positive or negative view - implying they do not fully understand the financial implications, according to JLT Benefit Solutions.

The report shows 51% of employees feel safe in their final salary occupational scheme, compared with 32% in stakeholder pensions, 39% in defined-contribution schemes and 27% in group personal pensions.

Duncan Howorth, CEO of JLT UK Employee Benefits Group, said: "In the current climate, it is surprising final-salary members have expressed such high levels of confidence in their funds.

"Since we are seeing a significant proportion of these schemes being wound up by UK businesses, I would have expected confidence to be lower and among employees who are members of defined-contribution schemes we would expect more confidence in their pension fund.

"It seems the public are becoming ever more disengaged with pensions at a time when understanding and involvement are key. With the advent of Personal Accounts in 2012 this is an important time for employers to help employees to understand and value pensions and to know what actions they should be taking or what questions they should be asking."