Employee confidence in pensions has slightly improved over the last year, according to the National Association of Pension Funds (NAPF).

Their Workplace Pensions Survey shows a four per cent rise to seven per cent over the past year in employee confidence, which in December 2008 hit a low of one per cent.

The survey also showed that 34 per cent employees continue to view pensions as the most important benefit their employer can offer them on top of their basic salary.

Flexible working hours and bonuses experienced a decline in popularity.

39 per cent of respondents believe pensions remain the best way to save for retirement, and 47 per cent of those who had no access to a pension at work said it would increase their loyalty towards the employer if they did offer a pension.

However, the NAPF has warned that it is essential to keep the rebuilding of confidence in pensions as a priority for 2009.

"Confidence in pensions is better than it was a year ago," commented NAPF chief executive, Joanne Segars. "But the current economic environment means that whilst employee confidence in pensions remains positive, it is also very fragile.

"No matter how long and deep the recession, we still need to provide for old age. We can do that most effectively if working people are confident about pensions. That is why we urgently need a national campaign led by Government and actively supported by the pensions industry, worker representatives and business to rebuild confidence in pensions," she added.

- Pensions Age April 2009

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