Three million people are set to shun Government plans to auto-enrol them into a pension.
A Populous Poll of 500 adults eligible for auto-enrolment conducted by the NAPF claims one in three people, 32 per cent, will not want to remain in the workplace pension they are auto-enrolled into, a rise from the one in four suggested by a 2007 Government study.
The study found that 48 per cent say they could not afford the contributions while 29 per cent say they do not trust the Government and 26 per cent say they do not trust the pension industry.
The study also suggests widespread suspicion of pensions and charges, with 80 per cent calling for greater clarity on how pensions work and what they cost.
The NAPF has called for a more transparent, simple disclosure of pension charges with investors given the monetary sums involved, rather than just the percentages.
Chief executive Joanne Segars says: “People are wary of pensions and that is a big threat to auto-enrolment. We are alarmed that so many say they will reject the new deal and the picture has got worse since the recession.”
Affluent Financial Planning managing director Carl Melvin says: “People will only commit to something when they have been educated about the benefits of it. In the case of auto-enrolment, the Government has failed to do this.”