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Only 8% opt out of a workplace pension

Only 8% opt out of a workplace pension

Category: Pensions

Updated: 25/09/2013
First Published: 25/09/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

New research reveals that the Government's latest initiative to get people saving towards retirement has so far exceeded the pension industry's expectations.

According to Scottish Widows' Workplace Pensions Report, only 8% of employees have opted out of being auto-enrolled into a workplace pension, far below industry forecasts of 30%.

Meanwhile, awareness of the Government initiative has grown substantially since the scheme was launched one year ago, from over a third of employees (39%) to almost two-thirds (65%) today.

Scottish Widows concluded, however, that there is still much work to be done as more companies gear up to auto-enrol their employees over the next few years.

Communication around workplace pensions remains poor, with nearly half (44%) of employees not aware of how much their employer contributes towards their pension scheme.

Around a third of companies are also not sure about what auto-enrolment pension arrangements they'll set up, with almost a quarter citing cost concerns as their biggest worry.

What next?

Learn more about auto-enrolment and what it means for you.

5 Reasons why you need a workplace pension

Increase your income in retirement by up to 40% depending on your medical situation. Call our annuity partnership on 01737 233 435

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