View more on these topics

DWP survey reveals auto-enrol opt-outs rise among SMEs

Employees being auto-enrolled into pension schemes are increasingly likely to opt-out as small and medium-sized employers hit their staging dates, a Government survey reveals.

A DWP survey of 50 employers with staging dates this year found 12 per cent of workers who were auto-enrolled between January and July subsequently left the pension scheme, compared to 9 per cent in last year’s study.

Older and part-time workers were far more likely to opt-out, with more than one in five over-50s leaving schemes, compared to just 7 per cent of under-30s. Nearly a fifth (18 per cent) of part-time workers opted-out, compared to 10 per cent of full-time staff.

The most common reasons employees gave for opting-out included concerns over the affordability of contributions, already having adequate retirement savings, being close to retirement and a feeling that auto-enrolment contribution rates are too low to fund retirement.

Most of the employers surveyed chose a master trust as their scheme for auto-enrolment, with Government-backed scheme Nest the most popular. The DWP reports “a small number of employers mistakenly believed that they had to use Nest for workers they had automatically enrolled”.


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. No kidding? Who would have guessed?

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm