More than 90% of employees who have been auto-enrolled into a workplace pension by their employer have stayed in the scheme, according to research by the Department for Work and Pensions (DWP).
Its Automatic-enrolment opt-out rates: findings from research with large employers report surveyed 50 employers, 42 of which provided opt-out data representing around 460,000 auto-enrolled employees. It found that, on average, just 9% opted out.
The research also found that overall participation in workplace pensions has increased among the employers surveyed, from 61% to 83%.
It also found:
- Opt-out rates were higher, at 16%, where employees had already opted out of a workplace pension.
- Opt-out rates were highest (15%) in the 50-plus age group and lowest (8%) in the under-30s age group.
Steve Webb (pictured), minister for pensions, said: “Seeing our largest employers report such low opt-out rates bodes well for this ambitious programme, which will see millions more putting money aside for the future.
“Too few people have been saving for retirement. It is all too often something to be put off, something for tomorrow. These figures show that people really value the chance to save into a workplace pension because they know they will also get money from their employer and the taxman too.
“The sooner people start a pension the better, and this report shows that young people are keen to take charge and plan for their future.”