Almost two-thirds (59 per cent) of people feel unable to make confident decisions on saving for retirement because pensions are too complex, according to the Department for Work and Pensions (DWP) annual survey.

Four-fifths (79 per cent) of respondents without a private pension, and two-fifths (41 per cent) of those with a private pension, do not know their expected retirement income.

However, 70 per cent of the 1,949 adults in the Attitudes to pensions: The 2012 survey said they are likely to stay in a workplace pension scheme if auto-enrolled. Key reasons given for saving are the fear of not having enough in retirement (32 per cent) and qualifying for a company scheme (28 per cent).

Minister for Pensions Steve Webb said: “The simple fact of being offered a company pension is a clear driver to helping people save. However, too many people are put off saving for their old age by a pensions system which is too complex and too few know clearly what they will get when they retire.”

“We are working with the industry to restore trust and confidence in pensions and we will reform the state pension to make it simpler and easier to understand,” he added.

The survey follows the DWP paper Reinvigorating Workplace Pensions published last week with new ideas on risk-sharing between employers and employees, and helping people get the most value out of their pension.

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