Stakeholder pensions were dealt a further blow this week following the latest research from Nor...
Stakeholder pensions were dealt a further blow this week following the latest research from Norwich Union.
Only just over a half of those questioned earning between £10,000 and £25,000 a year had heard of stakeholder pensions. The finding is likely to disappoint the Government, as one of its key objectives behind stakeholder is to provide a pension scheme attractive to lower end scale earners.
Paradoxically, the research shows stakeholder awareness actually increases in relation to earnings, with the result that more than eight out of ten people earning over £50,000 a year have heard of stakeholder pensions whereas only just over three out of ten earning less than £10,000 a year have heard of them.
The government has a hard drive ahead to raise both consumer awareness and willingness to save through stakeholder. Two thirds of those questioned earning between £10,000 and £25,000 a year are 'unlikely' to consider taking out a stakeholder pension in the future, despite the fact that more than half of them have no other pension arrangements.
Of those actually aware of stakeholder, the majority heard about it from the television.
Jerry Barnfield, director of pensions development at Norwich Union, said: "This research suggests that the benefits of stakeholder pensions are more familiar to the better off than to those on average or below average earnings, where nearly a half say they've not heard of them. This is a worry, because for a great many of them, stakeholder might well be a suitable savings option."
The study conducted by MORI Financial Services (MFS) is continuous with 2,000 interviews a month, conducted face to face in the home. The data referred to here was collected between September and December 2001.
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From 1 March