IRRV Alert November 3 2008

News

Circulars

Consultations

Reports

Publication of DWP research report: no 540 - The information people may require to support their decision to remain in, or opt out of, a workplace pension

 

 

 

11 November 2008

Research published today by the DWP presents findings from sixteen focus group discussions, which explored the types of information people felt they may need following their automatic enrolment into a qualifying pension scheme. The research aims to identify what information people may need to have access to when deciding whether to remain in, or opt out of, a workplace pension.

The main findings were as follows:

Participants identified seven ‘core’ information requirements. These were considered to be essential for them to make an informed decision.

The two most important information requirements were:

The means to assess affordability. Respondents said they would require information about contribution levels in order to consider whether their disposable income would be sufficient to cover contributions.

Security.  Respondents reported they would want to know how safe their savings would be and who would have access to their fund.

Twelve additional ‘supplementary’ areas of information were also identified. Respondents believed access to this information would increase their confidence in the decision they will make. Although many respondents said they would not read this information, its provision would demonstrate to them that the process was transparent and trustworthy.

When asked for views on providing information, respondents suggested the period 6-12 months prior to the introduction of automatic enrolment as a potential window for an awareness-raising campaign, with access to additional information at the time they may be automatically enrolled into a workplace pension.

 

Notes

  1. DWP commissioned BMRB (British Market Research Bureau) to undertake this qualitative research. They conducted 16 group discussions lasting one and a half hours. The 130 participants were selected to reflect a wide range of characteristics. This report contributes to our understanding of what information people will require when the make the decision to remain in, or opt out of a qualifying workplace pension, following the introduction of automatic enrolment in 2012.
  2. DWP is currently considering how best to ensure that individuals are equipped with the necessary facts and understanding to enable them to make plans for financial provision in retirement.
  3. Findings from this small scale qualitative study present a valuable insight into the range of information individuals may require to support their decision making around automatic enrolment into a workplace pension. This research was commissioned to obtain a rich and detailed understanding of a range of information requirements and not to reach any definitive conclusions on what information should be provided.
  4. DWP Research Report 540, ”The information people may require to support their decision to remain in, or opt out of a workplace pension”, McAlpine, A., Marshall, H. and Thomas, A. is published on 11 November 2008. The full report can be found at http://www.dwp.gov.uk/asd/asd5/rports2007-2008/rrep540.pdf

 

 

IRRV Software

Copyright © 2025 · All Rights Reserved · Institute of Revenues Rating and Valuation
Warning: Undefined array key "User_id" in /home/irrvnet/public_html/forumalert/inc_footer.php on line 4