The Government has slashed its estimate of automatic enrolment opt-outs from 30 per cent to just 15 per cent over the lifetime of the reforms.
The Department for Work and Pensions has today published new research setting out the number of people who have actively chosen not to save into a workplace pension scheme since October 2012.
The study found that around 10 per cent of employees have opted out among the UK’s largest firms. In light of this, the Government has drastically reduced its initial “cautious” opt-out estimate for all employers.
Pensions minister Steve Webb says: “Automatic enrolment is proving significantly more successful than previously predicted. With opt outs remaining low we now expect 9 million people will be newly saving or saving more as a result of our reforms.
“Our reforms to pensions are working and have already proved a success. Now this is an extra million savers who will be helping to secure a better future for themselves and their families.
“Ensuring people can plan for their retirement is crucial to building a stronger economy.”
Nest chief executive Tim Jones says the Government-backed pension scheme’s current opt-out rates stands at 7 per cent.
He says: “If these predictions are correct it’s very promising news for future generations of pensioners, who’ll be better off as a result. A workplace pension is a great helping hand for the future and it’s encouraging to see this message getting through.”