Of the 1.6 million people who have been automatically enrolled in workplace pension plans in the United Kingdom, just 9% have opted out.
The National Employment Savings Trust (NEST) says that one-third of those who opted out cited affordability as the reason; 15% say they are saving through other means, and 14% say they were too close to retirement.
Of those who have stayed in, more than half say they’ve done so because they think it’s time to start saving for retirement, and 48% say it makes financial sense because the employer contributes. Just 13% say they were too busy to opt out.
“Many households are still feeling the pinch, and people are worried about the future, but they clearly think tomorrow is worth saving for, and automatic enrollment seems to be a welcome helping hand,” says NEST CEO Tim Jones.
The largest U.K. companies began auto-enrollment last October. Medium-sized firms will start the process next April, and companies with fewer than 50 employees will begin in June 2015.
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