67% of NI adults reject pensions

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Two-thirds (67%) of adults in NI do not believe pensions are a reliable way to save for retirement, according to a new survey.

PricewaterhouseCoopers questioned people in 12 UK regions after record deficits were reported for FTSE 100 defined pension schemes in June.

Northern Ireland's response placed it equal seventh with London in the list.

Belfast-based PwC partner, Mark McClintock, said there was widespread distrust of the pensions system.

"While employers are grappling to repair vast pension deficits and reviewing future pension provision, it seems that employees do not necessarily value or trust pensions as a savings opportunity in the first place," said Mr McClintock, who is PwC's UK head of pension trustee services.

"This is a crazy situation for both parties.

"Pensions can be an effective way of saving for retirement, but employers need to rebrand the value of pensions as part of a transparent reward package, while employees need to embrace pensions as an alternative to low income retirement.

"Employers, pension providers and Government need to make pensions arrangements simple, durable and appealing."

A representative sample of 2,022 adults from across the 12 UK regions was asked, "Do you trust that pensions are a reliable way of saving for your retirement?"

The region with the highest amount of people answering in the negative, was the North-East of England where almost 80% of respondents said they distrusted pensions.

The survey found women slightly less trusting than men, with just over a quarter of females (28%) saying they have faith in pensions compared with a third (33%) of males.

Younger people were more positive than their older counterparts.

Of the respondents aged 18-34, 38% said they had trust in pensions, while 26% of 35-54 year-olds and 28% of those aged 55 and over agreed.