26 January 2012
The opportunity to benefit from employer contributions remains
the single biggest reason for people to stay enrolled in new
workplace pension schemes, according to latest research from the
Association of British Insurers (ABI). The findings come as
the government has announced a clear timetable for the roll-out of
workplace pension reform, which will see all employees being
automatically enrolled into a workplace pension scheme, starting in
October 2012. Please see our new item dated 25
January 2012 for further details.
The ABI consumer survey suggests that not missing out on
employer pension contributions (47%) and on tax relief from
contributions (14%) were the most popular reasons encouraging
people to remain 'opted-in' to workplace schemes. This
clearly shows that people see the value of the extra top ups they
will get from their employer and tax relief.
Overall, more than half (53%) of people not already in a company
pension scheme say they will remain 'opted-in' when their employers
begin automatically enrolling them in October 2012. With a
further 30% undecided, there could be even more people remaining
'opted-in' and saving for their future.
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