Defined Benefit

Public sector workers are more inclined to back auto-enrolment and less likely to accept a later retirement age, new research shows

Unpublished research from Hymans Robertson’s recent Pensions & Savings survey also reveals private sector staff are more likely to believe the bulk of responsibility for providing retirement income lies with individuals, rather than the state.

This extra analysis has also been requested by John Hutton for consideration in his review of public sector pension provision.

The results show 62% of those employed by the state believe companies should be compelled to auto-enrol staff into a pension, while just 21% are opposed to the idea, compared with 59% for and 28% against in the private sector.

Just 48% in the public sector would accept an increase in their current working age, compared to 52% of staff at businesses.

Half of those privately employed said the “most” responsibility for retirement incomes lies with individuals, with 44% in the public sector saying the same. But those answering “the state” to the same question were around 30% for both sets of respondents.

Hymans’ senior partner Ronnie Bowie (pictured) said: “It is time to design a simpler pensions and retirement savings system fit for the next generation, which is why we welcome the Public Sector Pension Commission chaired by Lord Hutton, and are contributing ideas and solutions for consideration.

“For the commission to be successful in meeting its long-term aims of making public sector pensions fairer, more sustainable and more affordable, it will need to instigate behavioural as well as political change.

“The necessary reforms are likely to be controversial and public support will be needed not just to get any new policy through but to make it work.”

The Hutton review of public sector pensions is expected later this month, having originally been planned for the end of September.