90 per cent of workers are staying in their workplace pension
Over 90 per cent of people who have been placed into a workplace pension by their employer are staying in.
Department for Work and Pensions (DWP) research published today (8 August 2013) gives the first official indication of how well the government's landmark automatic enrolment scheme, to get people saving for their retirement, is being received.
The qualitative research of the 50 biggest employers shows that on average just 9 per cent of people have opted out. Previously, DWP research with workers across all business sizes found that 30 per cent were likely to opt out.
The findings also suggest that young people are leading the way in the savings revolution, with more under 30s staying in a pension scheme than other age groups.
The duty of enrolling workers into a pension scheme started with the largest employers in October last year and will extend to the smallest firms by 2018. Automatic enrolment was introduced to address chronic under-saving with millions not putting aside enough for retirement, and only 1 in 3 private sector employees paying into a workplace pension.
This news comes on the back of figures published last month by The Pensions Regulator that showed over 1 million workers have been enrolled into a pension. By 2018 it is expected that between 6 and 9 million people will be save more into a pension or join a scheme for the first time.
Charlotte Jackson, Head of Information and Guidance, The Pensions Advisory Service said:
“This is great news that so many workers, especially younger people are taking advantage of saving into a workplace pension. Even for those working part-time, it's important to save as much as you can, as often you can for later life.
Pension experts are on hand to talk to employees about they will be affected by automatic enrolment. Call our national helpline on 0845 601 2923
or send us a message.