PwC research shows a lack of trust in pensions exists amongst employees.

Latest research from the UK’s leading professional services firm, PricewaterhouseCoopers (PwC), has revealed a distinct lack of trust across the adult population in pensions.

PwC has found that two out of three people do not trust pensions, with women slightly less trusting than men. The research was commissioned by the tax and advisory service and follows news that record deficits have been reported for FTSE 100 defined benefit pension schemes.

Of the 2,000 people who were surveyed, younger people were more positive about pensions than their senior counterparts. Of the 18-34 year-old respondents, 38% agreed that they have trust in pensions compared with 26% of 35-55 year-olds and 28% of those aged 55 or over.

Raj Moody, Pensions Partner and Chief Actuary, said: “At the same time that companies are grappling with how to repair past pension deficits and carrying out major reviews of their future pension provision, it appears that employees do not necessarily value or trust pensions as a savings opportunity in the first place.”

“There is an opportunity for employers and pensions providers to take the lead in rebuilding trust in pensions.”

Mr Moody said that pensions can still be an effective retirement savings facility, but stresses that employers need to re-evaluate the role and value of pensions as part of the employment package.

The Times has uncovered that one of Britain’s biggest unions – Unison – has itself been forced to outline proposals to cut costs in its own staff pension scheme after tirelessly campaigning against government public sector pension cut-backs. The union has said it can no longer afford its final-pension salary scheme and union bosses have been labelled by their own staff as hypocrites.

Last week, Whitbread – which owns Costa Coffee and Premier Inns – became the latest company to close its final-salary pension scheme.  Others that have followed suit this year include BP, construction and engineering company Costain and IBM.