Methodology note: ComRes interviewed 2,111 British adults aged between 18 and 60 by telephone between the 8th and 31st August 2014. Data were weighted to be representative of all British adults aged between 18 and 60.
Date Published: 14 Sep 2014
Description
An exclusive survey commissioned by the BBC’s Inside out programme (BBC ONE, Monday 15th September 7.30pm) reveals new evidence on why millions of British adults do not have a private pension.
Around half of British adults aged between 18 and 60 (48%) said they did not have a pension. Being unable to afford a pension right now is the primary reason given for not having one (39% gave this reason).
There are clear differences in the take up of private pensions by gender, age and socio-economic grade. More than two thirds (67%) of adults in the AB socio-economic grades have a private pension; compared with less than a third (31%) in DE grades, according to the ComRes survey.
Perhaps most interesting for the pensions industry is the fact that one in five (21% of those without a pension) say they are investing their money in other schemes such as property and long-term savings. A similar number of people without pensions (18%) say they don’t trust pensions companies while 14% think pensions are “too confusing” and the same proportion (14%) believe they wouldn’t get a good enough return on the money they invested.
The survey comes as the Government continues to promote new workplace pensions through auto-enrolment. The Pensions Regulator announced last week that more than 4.4million workers are now investing money in such schemes.
Tom Mludzinski, Head of Political Polling at ComRes, says: “With auto-enrolment being rolled out, this poll reveals some of the problems people perceive to exist around pensions. Clearly a significant section of the British population feel they are either unable or reluctant to invest their money in this way.
“There is a clear sense that many Britons feel disempowered with regard to private pensions – whether economically or through a lack of knowledge or trust.”
The second most common reason for not having a pension is the widely-held belief that people are “too young” to think about pensions (28%) – this belief is held by almost three quarters (72%) of those aged between 18 and 24 who do not have a pension, compared to just 2% of those aged between 45 and 54.
Further details on the survey:
Q. Which two or three of the following are the most important reasons why you do not take out a pension?
|
Options |
Percentage |
|
I can’t afford a pension right now |
39% |
|
I’m too young to think about pensions |
28% |
|
I just haven’t got round to it yet |
27% |
|
I’ve invested my money in other things, such as property and long-term savings |
21% |
|
I don’t trust pensions companies |
18% |
|
I’m concerned that I wouldn’t get enough back for the money I put in |
14% |
|
I find it too confusing |
14% |
|
I’d rather have the money today |
11% |
|
I will be able to manage on the state pension |
6% |
|
Other |
11% |
|
Don’t know |
1% |
Base: British adults aged 18 – 60 who do not have a private pension (n=906)
Methodology note: ComRes interviewed 2,111 British adults aged between 18 and 60 by telephone between the 8th and 31st August 2014. Data were weighted to be representative of all British adults aged between 18 and 60.