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Surge in pensions confidence, NAPF survey finds

Confidence in pensions has risen significantly in the past 12 months, according to a study by the National Association of Pension Funds (NAPF).

The NAPF's latest Workplace Pensions survey found confidence has particularly increased among employees already saving into a pension scheme or those who have already been auto-enrolled into a scheme.

The NAPF's Confidence Index, which measures the difference between the number of respondents who are confident and not confident in pensions compared to other forms of retirement saving, increased to -2 from -17 last October.

This is the highest score since 2010, with 44% of employees now very or quite confident about pensions, compared to 46% who are not confident. 

Joanne Segars, chief executive of the NAPF, said: "We knew that auto-enrolment would be a game changer but it would appear it has had a positive impact on confidence in pensions too."

She added that the challenge now is to keep auto-enrolment opt-out rates low, further increase confidence in pensions and encourage more people to save for retirement.

The study found confidence is higher (59%) among those who are already in a pension scheme and those who have been auto-enrolled than among those who do not save into a scheme (28%).

This is a rise since October 2012, when 50% of those already saving in a pension were confident in pensions.

Since the beginning of auto-enrolment last October, 1.6 million people have been enrolled into a workplace pension scheme. Opt-out rates are 12%, the major reason for which is cost.

HR magazine will be reporting live from the annual NAPF pensions conference in Manchester on the 17 and 18 October. Follow @thomasnewcombe @katie_jacobs and @arvindhickman for all the news and talking points.