Analysis of workplace pension provider NOW: Pensions’ 1.7 million members has revealed that its members in the North of England are most likely to opt out of auto enrolment and may be heading for poverty in retirement.
Residents of Cumbria are the most likely to opt out of the NOW: Pensions scheme with 8.2% doing so. In comparison, Northamptonshire and Bedfordshire’s residents are least likely to opt out at 3.2% and 3.5% respectively.
The data shows that after Cumbria, workers in County Durham (8%), Tyne and Wear (7.7%) and North Yorkshire (7.6%) are the most likely to opt out of workplace pension saving.
Auto enrolment was introduced in 2012 and has since seen more than 9.5 million people automatically enrolled into a workplace pension scheme.
Initially, minimum contributions were 2% of qualifying earnings. This rose to 5% in April 2018 and will rise again to 8% in April 2019.
Amy Mankelow, Director of Communications at NOW: Pensions said: “With so many competing financial pressures, pension saving can be difficult. But, with auto enrolment, when you pay in, your employer pays in too. If you opt out you will miss out on that free money from your employer so it pays to stay in if you possibly can.
“It’s also important to remember that the sooner you start paying in, the easier it will be to build a healthy pension pot for the future.”
More information
| Samantha Gould – NOW: Pensions Email: pressoffice@nowpensions.com | Instinctif Partners Email: nowpensions@instinctif.com | Fenella Cuthbert – Cicero/AMO Tel: 0207 947 5327 Fenella.Cuthbert@cicero-group.com |