Auto enrolment - DWP research on opt ins and opt outs

DWP research* (January-July 2014 stagers)

•Opt-ins 1%

•Average opt-out rate of 12% in 1st month after staging (range 5 - 15%)

•Ceasing active membership months 2 and 3 - 2%

•Average scheme participation rose from 43% to 73%

•Most likely to opt-out +50 yrs and part-time workers - opt-out reasons:

–lack of affordability (typically £20-£30k earners)
–some other form of saving and/or pension in place (50% of these earned less £30k)
–insufficient time to save enough (typically over 50 yrs)
–not planning to stay with employer and didn’t want small pot
–a few wary of pensions as a savings vehicle.

* 50 employers and 100 workers who ‘opted-out’ were interviewed. PAYE size range 62-499.

(Information source - The Pensions Regulator)

Posted byPaul ByrneinAuto Enrolment