B&CE research: low opt out for auto-enrolment

Nearly two thirds of employees in the construction industry intend to contribute to the National Employee Savings Trust (Nest) pensions plan, according to research from B&CE, the employee benefits provider to the construction industry.

Respondents, who are B&CE clients, indicated that 72% of them intended to contribute 4% of earnings and not opt out of Nest.

In the 12 months since the identical research was carried out, there was only a small increase in the number who indicated they would opt out, up from 25% to 28% despite the economic situation over the past year.

Regionally, there are large variations within the group surveyed with over 35% in the North and Greater London regions saying they will opt out but only 15% in the areas of Yorkshire, Humberside, the South West and Wales.

In addition, there were distinctions within age bands, with only 10% within the 18-34 age group indicating they would opt out.

This rose to 17% within the 35-54 range while the most significant increase was within the 55 group with 42% indicating that they would opt out.

B&CE’s research also looked at why customers might opt out.

A fifth (21%) gave the reason of affordability; an increase of some 17% on the previous year but perhaps indicative of the current economic climate and 24% cited the fact they already contribute to another pension; down some 30% from last year.

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