Three in four workers (75 per cent) said they were be more likely to vote for a political party that is promising to reform workplace pensions — according to a new survey.
Ahead of the general election an overwhelming majority (88 per cent) of workers surveyed said they want the next government to do more to help them save for retirement.
The survey, by master trust provider TPT, found that more than nine out of 10 workers (96 per cent) supported reforms to increase retirement by expanding auto-enrolment and increasing minimum contributions.
This comes as almost six out of 10 workers (57 per cent) said there were worried they were not saving enough and 45 per cent were concerned they could face poverty in retirement if they system is not reformed. TPT also found that 55 per cent of respondents said they were concerned about retirement costs.
TPT’s survey also found that many people struggle to understand their pensions and subsequently find it difficult to make retirement decisions. One in three workers (30 per cent) said pensions are too complicated and 96 per cent would support policies to make pensions simpler to understand.
It also found that more than half of workers (59 per cent) would wasn’t schemes to introduce a default decumulation option, to make it easier for people to choose how to use their pension pot when they retire. A similar proportion (55 per cent) said they supported proposals for a pension pot for life, to make it easier for people to keep track of their pension savings.
The tax system’s complexity also appears to be discouraging people from investing more for their retirement. TPT’s research found 91 per cent of workers support tax reforms to make it easier for people to invest more in their pensions. Introducing a tax-efficient form of sidecar savings is one option that could appeal to 36 per cent of workers. Meanwhile, more than four in 10 workers (44 per cent) also oppose the return of the Lifetime Allowance.
TPT Retirement Solutions chief executive David Lane, says: “Our research shows working people want the government to reform the pension system. Currently, most people are not saving enough for retirement and many struggle with retirement decisions. Any political party that tackles these issues could be rewarded at the ballot box. Following our research, we have drawn up our own top ten recommendations to improve the pension system. We believe these policy changes could significantly improve the retirement savings of millions of people.”