George Osborne’s revolutionary pension freedoms appear to be switching on more young people to thinking about savings for the future, pension scheme Nest’s annual consumer survey shows.
Around one in three say they will think about planning for retirement sooner as a result of the changes, rising to 40 per cent of people between 22 and 30-years-old.
However, 52 per cent approaching retirement say they are not expecting to change their savings plan.
The findings – from a survey of 2,000 auto-enrolment eligible workers – also appear to confound fears people will take all their pension as a lump sum.
Just 7 per cent of respondents said they would “take it all out”, compared to 19 per cent who would enter a drawdown-like plan. A further 19 per cent plan to blend a guaranteed income with further investment.
The survey finds support for auto-enrolment growing. More than three quarters say the policy is a “good thing”, up from 68 per cent in 2013 and 63 per cent in 2011.
Nest chief executive Tim Jones says: “It is hugely positive to see that pensions are becoming embedded as a national priority. Until recently, millions of people were not saving for retirement. Auto-enrolment and now the new pension freedoms have changed all this – reform is leading to a pension revolution.”
In addition, fears of pensioners’ over-reliance on property as a source of income could be unfounded, Nest says.
Half of savers say some form of pension saving will provide the greatest proportion of their retirement income, while just 9 per cent think property will sustain them.