Trafalgar House - a leading third-party pensions administrator - has recently unveiled the results of its annual Trust & Confidence Index of the pensions industry, marking a significant uptick in public trust for the fourth consecutive year.

The findings, derived from a comprehensive study involving over 2,000 individuals aged 18 and above, were compiled at the close of 2023. This ongoing initiative aims to gauge the sentiments of the British populace toward the pensions sector, shedding light on the level of trust placed in the industry and the confidence individuals have in it to fulfil their retirement aspirations.

Using a rating scale ranging from 0 to 10 - where 0 signifies 'no trust at all' and 10 denotes 'complete trust' - respondents were asked to evaluate their level of confidence in the pensions industry. The headline figure from the survey indicates a noteworthy increase in trust, with the score climbing to 5.26 out of 10 in 2023, up from 4.95 in the preceding year. This upward trajectory follows a consistent pattern of year-on-year improvements, with trust scores of 4.63 in 2021 and 4.46 in 2020. In essence, this represents a remarkable 18% surge since 2020, signalling a growing faith in the pensions sector among the public.

Delving deeper into the data reveals a notable decline in negative perceptions, as responses indicating 'no trust at all' decreased by 1.8%, while those expressing 'little trust' diminished by 1.3%. Collectively, this reflects a 3.1% reduction in negative trust responses. Interestingly, the shift hasn't merely transferred to moderate trust levels, as the category of 'to some extent' also witnessed a decline of 3.5%. Instead, there has been a substantial increase in positive evaluations, with responses indicating 'a reasonable amount' rising by 5.8% and 'a lot' by 0.9%. Combined, this accounts for a 6.7% surge in higher trust ratings. Consequently, the proportion of individuals harbouring little to no trust in the pensions industry now stands at a mere 22%.

These findings offer encouraging insights into the evolving perceptions of the pensions industry, painting a picture of increasing trust and confidence among the British public. The consistent year-on-year improvements in trust scores reflect concerted efforts by stakeholders to enhance transparency, accountability and service delivery within the pensions sector.