Title
Contents
Acknowledgements 6
The Authors 7
Glossary of terms 8
Summary 12
1. Introduction 22
1.1 Research background 22
1.1.1 Policy background 22
1.1.2 The need to gather evidence on public attitudes 23
1.1.3 Quantitative and qualitative research 23
1.1.4 Key findings from the quantitative research 24
1.2 Research aims 25
1.3 Methodology 25
1.4 Research design 26
1.5 Definitions, presentation and interpretation of data 27
1.6 An informed audience 28
1.7 Analysis 28
1.8 Report structure 29
2. General attitudes to personal accounts 30
2.1 Attitudes towards the reforms and personal accounts 30
2.1.1 Attitudes towards automatic enrolment 31
2.1.2 Attitudes towards employer contributions and tax relief 33
2.1.3 Attitudes towards individual contributions 34
3. Making the decision 35
3.1 The context 35
3.2 Eliciting views on the importance of different factors 36
3.3 The ease or complexity of decision-making 36
3.4 Approaches to decision-making 38
3.4.1 Cost-benefit analysis 38
3.4.2 Short-term financial considerations 39
3.4.3 Valuing the principle of saving for retirement 40
3.4.4 Linking the decision to existing political and ideological standpoints 40
3.5 The role of others when making the decision 41
3.5.1 Informal advice 41
3.5.2 Formal advice 42
4. Understanding reasons for staying in 43
4.1 The decisive factors 44
4.1.1 Perceived Government backing of the personal accounts scheme 44
4.1.2 Desire for a decent standard of living in retirement 46
4.1.3 Desire for financial independence during retirement 47
4.1.4 Desire to start saving as soon as possible 47
4.1.5 Changes in personal circumstances 48
4.2 The important (but not decisive) factors 49
4.2.1 Employer contributions and tax relief 49
4.2.2 Simplicity of the reforms and flexibility of the personal accounts scheme 51
4.2.3 Pensions as a reliable form of retirement saving 53
5. Understanding reasons for opting out 54
5.1 The decisive factors 54
5.1.1 Too young or too old to save 54
5.1.2 Changes in personal circumstances 56
5.1.3 Perceived affordability 57
5.1.4 Preference for other ways of saving and investing 58
5.1.5 Uncertainty about what personal accounts will be worth when retiring 59
5.1.6 Experience of State financial support 60
5.2 The important (but not decisive) factors 61
5.2.1 Lack of trust in pensions 61
5.2.2 Impact on employer and job security 61
5.2.3 Values and beliefs with regards to automatic enrolment 62
5.2.4 Concerns regarding the management of the personal accounts scheme 63
5.3 Factors that would need to change 63
Appendix A. The discussion guide 65
Appendix B. The decision grid used during the interviews 81
Appendix C. The pre-task exercise and information received by participants prior to each interview 82