Women most likely to opt out of workplace pension saving

FOR IMMEDIATE RELEASE 22 FEBRUARY 2018

An analysis of NOW: Pensions’ members at the end of 2017 has revealed that women of all ages are more likely to opt out of workplace pension saving compared with men. Nearly one in ten women (9%) opted out compared to 7% of men. As women get older, their propensity to opt out also increases.

Most likely to opt out are 60-64 year old women, as figures show only 62% of this demographic remain in their workplace scheme compared to 70% of men. The overall opt out rate for 60-64 year olds is 33%.

Men aged 22-29 are least likely to opt out of workplace pension saving with just 3% opting out. This compares with 5% of women in the same age group. The overall opt out rate for 22-29 year olds was 4% at the end of 2017.

 

NOW: Pensions’ opt out rates January – December 2017

Age Band             Opt out rate (male)         Opt out rate (female)    Opt out rate (all)

22-29                     3%                                    5%                                                    4%

30-39                     5%                                    7%                                                    6%

40-49                     7%                                    9%                                                     8%

50-59                     12%                                  15%                                                  13%

60-64                     30%                                  38%                                                  33%

All ages                  7%                                                  9%                                                   8%

 

Troy Clutterbuck, Interim CEO, NOW: Pensions said: “The data shows two clear trends. Firstly, women across all age groups are much more likely to opt out of pension saving than men. Secondly, as people get older, their propensity to save into a workplace pension rapidly declines.

“The reasons for this behaviour are undoubtedly far from simple. It might be that older people think it’s too late or don’t believe there’s any benefit of being in a workplace pension as they get close to retirement. It could be that they already have enough put aside.

“For women, who are more likely to be part time workers and lower earners, it might be that they simply don’t feel they can afford it.

“For these groups, arguably more needs to be done to drive home the value of the employer contribution, tax relief and the tax free lump sum.”

 

–     ENDS     –

 

For further information:

Amy Mankelow / Cheriton Lee

NOW: Pensions

Tel: 0203 948 9234 / 0203 948 9236

amy.mankelow@nowpensions.com / cheriton.lee@nowpensions.com

Notes to editors

NOW: Pensions www.nowpensions.com @nowpensions

NOW: Pensions is one of the UK’s largest workplace pension providers with over a million members and tens of thousands of employers from a wide range of sectors. A company wholly owned by Danish pension scheme ATP; one of Europe’s largest pension funds. NOW: Pensions entered the UK market in 2011 with a simple and cost effective workplace pension designed specifically with the auto enrolment market in mind.

NOW: Pensions was attractive to us because the staff were very helpful and they sent over all the information required. This made the decision easy. — Metro Surveillance Group Ltd
NOW: Pensions has a good technical infrastructure combined with a pension product suitable for our team. We couldn’t be happier with NOW: Pensions. — Martin Woods, SALT.agency
Our broker recommended NOW: Pensions, as they believed it would be our best option. We have not been disappointed, the NOW: Pensions customer support teams are great and always available. — Bromborough Paint & Building Supplies Ltd