Over 90 per cent of people placed in a workplace pension under the auto-enrolment initiative are staying in, according to new research.
The Department for Work and Pensions (DWP) revealed the figure on 8 August, as part of research carried out with the 50 biggest employers to join the automatic enrolment programme.
The findings also suggest that young people are leading the way in the savings revolution, with more under-30s staying in a pension scheme than other age groups.
The duty of enrolling workers into a qualifying workplace pension scheme started with the largest employers in October 2012 and will be extended to all employers by 2018. By then, it is expected that between six and nine million people will be saving more into a pension or joining a scheme for the first time.
Minister for Pensions Steve Webb said: “Too few people have been saving for retirement. 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 average opt-out rate in the study was nine per cent, with most individual employers reporting rates of between five per cent and 15 per cent.
If you are unsure of your obligations as an employer with regard to auto-enrolment then Milsted Langdon can help. We can explain your options and help you find the most appropriate workplace pension scheme for your company. For further information, please contact us.