Out of the 7 million additional people expected to start saving for a pension following the introduction of auto-enrolment 2.5 million will belong to an existing workplace scheme.
David Haigh, head of workplace pensions reform at the Department of Work and Pensions (DWP) quoted to these figures to delegates at the Employee Benefits Pensions Summit 2011 during his session How should employees respond to pension reform?
In addition Haigh estimated that half a million savers would be auto-enrolled into a brand new scheme launched by their employers, while around £4 million would belong to the National Employment Savings Trust (Nest).
He said: “If for some individuals [pension saving] is not worth it, there is the opt-out. Auto-enrolment is not compulsion it is just the default.”
For more articles on the 2012 pension reforms