- From today (6 April), auto enrolment minimum contributions jump from 2% of qualifying earnings to 5%
- 64% of auto enrolled savers aware of changes to minimum contributions
- Four in five (84%) auto enrolled savers say they will carry on saving after contributions increase
- Over half (51%) wish they had the opportunity to save into their workplace pension earlier
Nearly 5.6 million* auto enrolled savers are going to see a jump in the amount being paid into their workplace pension today. Four in five (84%) auto enrolled savers say they will embrace the increase and continue to save once contributions rise to 5% of qualifying earnings according to research** conducted by NOW: Pensions.
Of those workplace pension savers surveyed, nearly two thirds (60%) believe it’s important to save into a pension for a more secure future, with nearly a quarter (23%) of the view that their employer contribution is too valuable to lose out on.
While knowledge of these rises is good with 64% aware of the changes, it is clear that more needs to be done, as just under half (48%) of respondents say they wish they had better understanding of workplace pensions and 51% would have liked the opportunity to save into their workplace pension earlier.
Of those that have chosen to opt out, over a third (38%) did so because they cannot afford to have pension deductions taken from their pay packet each month and a quarter (24%) don’t see the point in saving into their pension because the amount paid into it is too small. Nearly one in five (19%) say they don’t trust pensions.
Troy Clutterbuck, Interim CEO at NOW: Pensions said: “Auto enrolment has been a huge success with over a million employers signing up over 9 million employees into a workplace pension since 2012.
“Pension saving is fast becoming the new normal and the vast majority are happy to pay in a little bit more each month, safe in the knowledge their employer will be doing the same.
Jasmine Birtles, financial expert and owner of money website Moneymagpie.com said: “Auto enrolment makes saving for your future simple. For most people, the increase to their contributions will be cushioned by an increase in their personal allowance and, for lower earners, it will also be offset by an increase in the National Living Wage.”