DWP research* (January-July 2014 stagers)
•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)