Results from an index that assesses public trust in the pensions industry has found confidence has increased for the fourth year in a row.
The annual Trafalgar House trust and confidence index, which surveyed 2,000 people at the end of 2023, examines people’s level of confidence that their retirement needs will be met by the pensions industry.
Respondents were asked to rate their trust levels using a scale of 0 to 10 with 0 being ‘not at all’ and 10 being ‘a lot’. This revealed trust had increased to 5.26 out of 10 in 2023, up from 4.95 in 2022. This continues the trend of year-on-year increases with the 2021 score being 4.63 and 2020 being 4.46.
The trust score also revealed a reduction in negative scoring with ‘do not trust at all’ down 1.8 percent from 2022 and ‘don’t trust much’ down 1.3 percent, representing a combined 3.1 percent fall in negative trust responses.
Daniel Taylor, client director at Trafalgar House, said: “While it is certainly encouraging to see a positive headline figure and a growth in public confidence over the last four years, we must remain mindful that this is a nuanced picture as the survey also reveals underlying concerns. For example, when asked how their trust in pensions affects how they feel about their level of savings for retirement, almost six in 10 people still say the industry has no impact on their retirement savings. This clearly indicates that, for most, pensions are not being considered as the predominant retirement plan.”
He added: “The picture is also complex when it comes to member attitudes. Although the lower negative trust score is good, this hasn’t translated into a broader positive feeling about retirement prospects. For trust in the industry to have negative or no impact on people’s savings habits is a dark cloud over the industry that needs to change. “
