Confidence in pensions rises to highest level since 2010
In the 12 months since auto enrolment was first introduced, confidence in pensions among employees has risen from 50% to 59%, the highest level since 2010.
The National Association of Pension Funds (NAPF) published the figures, taken from its Workplace Pensions Survey. The survey is taken to gain a better understanding of how employees view their pension savings, as well as how prepared they feel for retirement.
The following are some key points to be taken from the study:
- Pension scheme membership among 18-44 year olds rose from 41% to 48%
- Male respondents (53%) are more confident about pensions than females (35%)
- 67% of respondents who are contributing to a pension are confident about managing this
- The average opt-out rate among participants was 12%
- Out of those who did opt out, 47% said this was because they couldn’t afford to contribute to a pension
These figures help demonstrate some of the benefits already being achieved since auto enrolment was introduced. The fact that pension membership among 18-44 years olds rose is a big achievement, as encouraging people to start saving earlier was one of the key priorities of auto enrolment.
Over the coming months, auto enrolment will be rolled out to more and more companies. Industry experts recommend businesses start preparing 18 months before their staging date. If you are still confused about what auto enrolment involves and the steps you need to take to prepare for it, why not download our free introductory guide?