Savers prepared to work longer, says Friends Provident

According to the latest in Friends Provident’s Visions of Britain 2020 series of reports, the number of people believing retirement should be funded through longer working lives is around equal to those who think the state should pay for it through higher taxes (32% each).

But the same figures from 2006 show just over a quarter (26%) of respondents were prepared to work later, against 39% who wanted more state provision.

The poll also showed around 70% now expect to work beyond the statutory retirement age “for financial reasons”.

Friends Provident chief executive Trevor Matthews (pictured) called the statistics “positive”, telling schemeXpert.com : “The responses we had showed people are not resenting having to work longer, but that many look forward to it.”

But the report also sounded a note of caution, revealing nearly 60% of those surveyed still expect to fund their retirement solely through the state pension.

And there was further cause for concern in figures showing just 37% of people believe workplace pensions are better savings vehicles than private ones, suggesting widespread unawareness of employer contributions.

These worrying findings were compounded by the fact 87% had not heard of the National Employee Savings Trust, planned for 2012, which will come into force alongside rules making employer contributions mandatory, where staff choose to remain in a scheme.

“The industry still has a lot to do in improving the pensions brand,” said Matthews. “There is a real disconnect in these figures between a growing realisation people need to take more responsibility for their retirement, and a lack of understanding of what pensions are all about."

Matthews suggested providers should also do more to offer alternative forms of workplace savings, alongside pensions, such as independent savings accounts.