B&CE’s research highlights encouraging results around auto enrolment and retirement planning
A recent survey undertaken on behalf of B&CE, the employee benefits provider to the construction industry, has revealed some interesting results in terms of customer views and intentions around the introduction of the National Employment Savings Trust (NEST), formerly known as Personal Accounts.
B&CE initially posed the questions back in November 2008 as part of a wider customer satisfaction survey but to see any correlation in the responses directed the same questions to its existing customers again in November of last year.
With the forthcoming pensions reform in 2012, B&CE’s first question was to determine whether upon the introduction of Personal Accounts, now known as NEST, its customers intended to contribute 4% of earnings or indeed planned to opt out. The most encouraging indication B&CE’s research highlights is that 72% say they intended to contribute which is a very positive result for retirement planning. There has only been a very small increase in the number who indicated they would opt out, up from 25% to 28% despite the economic situation over the past year. Whilst the results are very encouraging, the recent announcements regarding the delays to phasing and staging are a major disappointment as it won’t be until 2017 before we see the full impact of the introduction of auto enrolment.
Regionally however, there are large variations within the group surveyed with over 35% in the North and Greater London regions saying they will opt out but only 15% in the areas of Yorkshire, Humberside, the South West and Wales.
In addition, there were distinctions within age bands, with only 10% within the 18-34 age group indicating they would opt out; again encouraging if this is indicative of a change of approach for this age group in terms of planning for their future retirement. 17% was the result from within the 35-54 range but the most significant increase was within the 55+ group with 42%. Perhaps they feel that it’s too late to start saving, especially with the potential negative impact of means testing.
B&CE’s research also looked at why customers might opt out. 21% gave the reason of affordability; an increase of some 17% on the previous year but perhaps indicative of the current economic climate and 24% cited the fact they already contribute to another pension; down some 30% from last year.
John Jory, Director of B&CE Insurance Ltd, comments "The survey results for the higher age bands are disappointing but perhaps not surprising. However, overall the results are very encouraging in that only 28% intend to opt out but significantly this falls to only 10% in the 18-34 age group. For this age group, starting to save from a young age could make a major positive impact to the income they can look forward to receiving in retirement."
For further information please contact:
Jo Gibbs
Communications Manager
01293 586541