Benefiting from employer-funded contributions is the biggest reason for employees staying auto-enrolled in occupational pensions, according to research by the Association of British Insurers (ABI).
The ABI consumer survey, conducted by YouGov, showed that not missing out on employer-funded pension contributions (47%) and tax relief (14%) on contributions were the most popular reasons to remain in an occupational pension once employees had been auto-enrolled.
More than half (53%) of employees not already in an occupational pension scheme have said they will remain opted-in when their employers begin automatically enrolling them, while 30% are undecided.
Maggie Craig, acting director of life, savings and protection at the ABI said: “It is encouraging to see a significant amount of people already recognising the value of the incoming auto-enrolment into pension schemes and we are pleased the government has announced a clear timetable for its roll-out.
“Around half of workers are either not saving into a pension or not saving enough, so auto-enrolment will give many people the much needed nudge to save for their retirement and break the savings stalemate.
“While current financial pressures can mean building up a sufficient pension pot often gets put on the backburner, people should not ignore the opportunity to benefit from employer contributions and tax relief on their own contributions.”
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