More than a third (38%) of respondents who have chosen to opt out of their workplace pension did so because they cannot afford to have the pension contributions taken from their monthly pay, according to research by Now: Pensions.
Its survey of 1,552 UK employees with pre-tax personal incomes of more than £10,000, also found that 23% of respondents save into their workplace pension because they feel their employer’s contribution is too valuable to lose out on.
The research also found:
- 24% of respondents who have opted out of their workplace pension did so because the contributions paid are too small and 19% opted out of their workplace pension because they do not trust pensions.
- 48% of respondents wish they had a better understanding of workplace pensions and 51% would have liked the opportunity to save into their workplace pension earlier.
- 64% of respondents who save into a workplace pension are aware of the changes to the minimum auto-enrolment contribution rates.
- 84% of respondents who save into a workplace pension will continue to save in this way after the minimum auto-enrolment contribution rates have increased.
- 60% of respondents believe it is important to save into a pension for a more secure future.
Troy Clutterbuck (pictured), interim chief executive officer at Now: Pensions, said: “Auto-enrolment has been a huge success with over a million employers signing up over nine million employees into a workplace pension since 2012.
“Pension saving is fast becoming the new normal and the vast majority are happy to pay in a little bit more each month, safe in the knowledge their employer will be doing the same.”