Auto enrolment opt out rates are three times lower than predicted
It has been almost a year since auto enrolment was first introduced to UK businesses, and research from Scottish Widows has discovered that the number of workers opting out of their workplace pension is substantially lower than initially predicted.
In the run up to the introduction of auto enrolment, industry experts estimated opt out rates reaching around 30%, but this new research shows rates only reaching 8%. This shows that auto enrolment is starting to meet its primary aim, that being to encourage more workers to save for their retirement through workplace pension schemes.
The report goes on to demonstrate how awareness of auto enrolment amongst employees has also increased substantially over the last year, from 39% to 65%.
It wasn’t all good news however, with communication around workplace pension schemes being poor. According to the survey almost half of employees are not aware of how much their employer contributes to their pension scheme.
Overall the results show us that while auto enrolment has seen some early victories, there is still a lot of work employers need to do to ensure its continued success. Experts are urging businesses to start preparing a minimum of 18 months before their staging date.
Have you started preparing for auto enrolment yet? If not, why not book a place on one of our three hour seminars – Understanding Auto Enrolment.