PUBLIC confidence in pensions has fallen to an all-time low just months before the UK Government launches automatic enrolment into a pension at work.

A survey carried out for the National Association of Pension Funds (NAPF) found that 54% of all employees are "not confident" in pensions compared to other ways of saving, with only 37% expressing confidence in them.

The resulting minus 17% reading on the NAPF's confidence index is the lowest since the index was first run in 2007, and a sharp fall from minus 6% last September and plus 5% in autumn 2010.

The NAPF, which begins its annual investment conference in Edinburgh today, is concerned that low confidence will undermine the landmark rules which begin to take effect in October.

Over the next five years, the new system will automatically enrol up to nine million workers into a pension.

The survey, run by Populus, showed that a third (33%) of those who are eligible for auto-enrolment will opt out, of whom 40% said they did not trust the pensions industry.

Joanne Segar, NAPF chief executive, said: "The weak economy and rollercoaster stock market may have put many off pensions, but there are also growing doubts about whether a pension is good value, and these need addressing."