New Research from the Department for Work and Pensions (DWP) published on Thursday reveals that 90% of people who have been placed into a workplace pension by their employer have chosen to stay in the enrolment scheme, while on average just 9% workers decided to opt out.
Earlier DWP research with workers across all business sizes had previously indicated that some 30% of employees would not take part in the scheme, however, the latest official figures, taken from qualitative research of the UK’s 50 largest employers, are said to indicate the success of the UK government’s workplace pension savings policy, which was designed to encourage people to save for their retirement.
The Pensions Regulator released figures in July establishing that more than a million people have been enrolled into a pension and it expects that by 2018, between 6 and 9 million workers will be saving more into a pension or will have joined a scheme for the first time. Also, young people under the age of 30 are found to be saving more in pension schemes, compared to higher age groups.
Automatic enrolment into company pension schemes began with the largest employers last October, as only 1 in 3 private sector employees had been paying into a workplace pension. The scheme will be extended to the smallest businesses by 2018.
Steve Webb, the Minister for Pensions, commented: “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 as 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.”