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Lack of affordability cited as main reason why over a third of UK workers plan to shun the government's pension initiative. More than a third of UK workers said they will opt out of any pension they are automatically enrolled into, putting the success of the government's plans to boost retirement savings "in the balance", according to research carried out for Aviva. Auto-enrolment into pensions began in October 2012, with the largest firms in the UK being obliged to put employees into a workplace scheme if there was not already one on offer. A phased rollout will result in millions of workers being enrolled into schemes by early 2018. However, employees have the option to leave the scheme, losing out on contributions from their employer and the government. Of those workers questioned by the insurer, 37% said they would opt out of the scheme, a figure unchanged since May 2012.....Read more here
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Workers to be automatically signed up to company pensions - allaboutFORUMS
70% of workers 'unaware' of auto enrolment pension plans - allaboutFORUMS
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Concerns have been raised that insufficient pension savings are being put into new, auto-enrolment workplace pensions. Nearly three million people have been signed up under the scheme, the Pensions Regulator is expected to announce later. For many, the scheme means some money is being put aside for retirement for the first time. But some say that contributions from employers are too small.
'Risk of disappointment'
Automatic enrolment started in October 2012. A slice of an employee's pay packet is automatically diverted to a savings pot for their pension, assuming they are aged 22 or over and earning at least £9,440 a year. Employers are obliged to pay in as well, with the government adding a little extra through tax relief. At first, an employee only sees a minimum of 0.8% of their earnings going to their workplace pension. Tax relief adds another 0.2%. Meanwhile, an employer is obliged to add a contribution that is the equivalent of 1% of the worker's earnings......Read more here