Voters want pension reform in Political Party Manifestos

• Three in four (75%) are more likely to vote for a political party that reforms workplace pensions

• Nearly nine in ten (88%) working people want the next government to do more to help people save for retirement

• Almost six in ten (57%) are worried they are not saving enough for retirement and 45% believe many people could face pension poverty if the system isn't reformed    

• 96% support reforms to increase retirement savings such as expanding auto-enrolment and increasing minimum contributions.

Three in four workers (75%) would be more likely to vote for a political party that reforms defined contribution (DC) pensions, according to new research from TPT Retirement Solutions, one of the UK’s leading providers of workplace pension schemes. It reveals that voters want reforms to workplace pensions to be included in the upcoming political party manifestos and that doing so could have a substantial impact at the ballot box. Nearly nine in ten working people with DC pensions (88%) want whichever party wins the general election to do more to help people save for retirement.

Workers aren’t saving enough for retirement

The research shows workers want the next government to reform pensions. Many are concerned about their retirement savings, with almost six in ten (57%) workers worried they are not saving enough for retirement. A further 45% fear people will face pension poverty if the system isn't fixed, while 55% are concerned about retirement costs.

Therefore, working people want the Government to act on this issue as 71% believe politicians are responsible for ensuring access to adequate pensions. As a result, 96% of workers support reforms to increase retirement savings, such as expanding auto-enrolment or increasing minimum contributions. More than four in ten working people (44%) also favour maintaining the triple lock on the state pension to ensure adequate retirement incomes.

Pensions are too complicated

TPT’s study also finds that many people struggle to understand their pensions and subsequently find it difficult to make retirement decisions. One in three workers (30%) believe pensions are too complicated and 96% would support policies to make pensions simpler to understand. So, how can the industry make pensions easier to understand? One popular option (59%) to simplify pensions is to encourage schemes to introduce a default decumulation option to make it easier for people to choose how to use their pension pot when they retire. Similarly, over half (55%) are behind proposals for a pension pot for life system, to make it easier for people to keep track of their pension savings.

It’s too difficult for people to invest more in their pensions

The tax system's complexity can also discourage people from investing more for their retirement. TPT’s research echoes this view, as 91% of workers support tax reforms to make it easier for people to invest more in their pensions. Introducing a tax-efficient form of sidecar savings is one option that could appeal to 36% of workers. More than four in ten workers (44%) also oppose the return of the Lifetime Allowance.

David Lane, Chief Executive of TPT Retirement Solutions, comments:

“Our research shows working people want the government to reform the pension system. Currently, most people are not saving enough for retirement and many struggle with retirement decisions. Any political party that tackles these issues could be rewarded at the ballot box. Following our research, we have drawn up our own top ten recommendations to improve the pension system. We believe these policy changes could significantly improve the retirement savings of millions of people.”  

Notes to Editors:

Censuswide survey of 2,011 working people with Defined Contribution pensions completed May 2024.

TPT Retirement Solutions (TPT) is one of the UK’s leading providers of workplace pensions with over 75 years’ experience of managing defined benefit and defined contribution pension schemes. It has £9.6 billion of assets under management (as at 30 September 2023) and more than 450,000 members.

TPT’s mission is to make pension schemes perform better for everyone, from the sponsoring employers and trustees to the members who are saving for the future. It is an innovative, forward-thinking organisation, investing in technology to improve the services they provide. TPT is ultimately owned by a pension fund, providing genuine alignment of interests with those of its clients and scheme members.