Contact Us

Villars Hayward LLP
Boston House, Boston Road
Henley-on-Thames RG9 1DY

Tel: 01491 411077   Fax: 01491 410199

Return to Latest News

 

 

 

 

 

Auto-enrolment opt-out rate ‘lower than expected’

 

Fewer people than expected have chosen to leave the Government’s new pension auto-enrolment scheme, new figures suggest.

 

According to a study from the National Employment Savings Trust (NEST), just 9% of workers opted out after being automatically enrolled into a workplace pension.

 

The Government had predicted that the opt-out rate may be around a third.

 

The majority of people who chose to opt out did so due to financial pressures, while 15% said they withdrew because they were saving via another means. Some 14% of the workers surveyed claimed they were too close to retirement to justify remaining in the scheme.

 

It is thought that some 1.6 million people have now been automatically enrolled into a workplace pension since the scheme was launched in October 2012.

 

Commenting, Charles Counsell, executive director of automatic enrolment at the Pensions Regulator, said: ‘Automatic enrolment has been successfully rolled out to more than 2,000 of the UK's largest employers and well over 1.5 million people are now saving for their retirement as a direct result.’

 

Pension auto-enrolment is being phased in over a number years, starting with the largest employers.

 

For more information visit www.thepensionsregulator.gov.uk.