Of those employers that have auto-enrolled staff into a workplace pension and have calculated their opt-out rate, more than half (56%) found that less than 10% of their staff opted out of their pension plan.
No respondents to the Employee Benefits/Capita Pensions Research 2013 had an opt-out rate higher than 29%.
However, of the total number of respondents that had auto-enrolled, 58% said it was too early to assess their opt-out rates.
At the time that this research, conducted among xxx HR and benefits professionals, took place, only large employers had auto-enrolled staff.
Given the small sample size and the large number of respondents that had not yet calculated opt-out rates, the research could not be conclusive as to whether these rates are in line with employer expectations.
However, the predicted opt-out rates among both employers that have auto-enrolled staff and those are still to do so were remarkably similar, with around half expecting opt-out rates of less than 19%.
[BAR CHART]
Proportion of employers that experienced each level of opt-out rate among staff
None 1%
1-4% of staff 13%
5-9% of staff 11%
10-19% of staff 12%
20-29% of staff 5%
too early to tell 58%
Sample: Those who have auto-enrolled staff (92 respondents)
Level of opt-out among employers that have calculated this
None 3%
1%-4% of staff 31%
5%-9% of staff 26%
10%-19% of staff 28%
20%-29% of staff 13%
Sample: Those who have auto-enrolled staff and calculated opt out rate (39 respondents)
Predicted levels of opt-out for auto-enrolment
None 7% (a) 11% (b)
1-9% of staff 33% (a) 36% (b)
10-19% of staff 16% (a) 19% (b)
20-29% of staff 21% (a) 7% (b)
30-39% of staff 12% (a) 3% (b)
40-100% of staff 12% (a) 14% (b)
Not calculated 19% (b) [there is no ‘e’ bar]
(a) = Those who have auto-enrolled staff (92 respondents)
(b) = Those who still have to auto-enrol staff (232 respondents)
Read the full version of Employee Benefits/Capita Pensions Research 2013 [[ADD LINK TO DIGITAL VERSION]