Daily Research News Online no. 2392 - Commons Review Pensions Research

Commons Review Pensions Research

June 3 2003

Brahm Research and public affairs specialists Cicero Consulting played host to a major pensions event at the House of Commons in London last week, attended by key policymakers. Speakers included the former minister for welfare reform, the Rt Hon Frank Field MP and Edward Garnier QC MP, currently masterminding the Retirement Income Reform Bill.

Also at the meeting were members of the Treasury and Work and Pensions Select Committees and representatives from the UK's leading pensions companies.

The discussion was supported and initiated by a national consumer survey by Brahm, which looked specifically at the next generation of pensioners and found worrying levels of denial about retirement planning, and, interestingly, a willingness for Government intervention to help people save for their retirement.

'This event clearly underlined the role research has to play in political policy making' said Brahm Director Robin Horsfield afterwards. 'Moreover, it demonstrates how powerful consumer insight can influence change in the financial services industry. Pensions remain in the news and policymakers are becoming increasingly exercised by the need to address the growing savings gap'.

According to Edward Garnier MP 'These research findings are further evidence that the Retirement Income Reform Bill is needed more now than ever before. With a continuing pensions crisis, there is a desperate need for measures to instill public confidence in pensions. This Bill and Frank Field's Pensions Winding Up Bill are designed to do just that.'

Some of the main research findings were as follows:

People's ambition to retire early remains strong ie at 55 years of age
Over 8 in 10 consumers (including those not currently making pension contributions) predict they will be comfortably well off or 'okay' in retirement
Y45% are nevertheless unaware of what income their pensions will provide: a third (33%) say their income will more than halve, and only a fifth (22%) estimate an income of around or over two-thirds of their final salary
Those contributing to a pension scheme expect to supplement their retirement income with a mix of proceeds from property, ISA-based funds and general deposit savings
Over a third (37%) of those not currently contributing to a pension scheme do not know how they will fund their retirement, whereas only 3 in 10 (30%) expect to join or commit to a pension scheme in the future.

Leeds-based Brahm is one of the fastest growing research consultancies in the UK (Source: BMRA), specialising in financial services, public policy, retail, public sector, leisure and communications development.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.