Legal and General research: Older employees more likely to opt out after auto-enrolment

Older employees claim they will opt out of an occupational pension scheme following auto enrolment when the 2012 pension reforms begin to come into effect from next year, according to research by Legal and General.

Those in their 50s and 60s are likely to rely on the state pension and opt out of workplace schemes, along with employees between the ages of 22 and 30.

However, those between the ages of 30 and 40, who are not yet members of an organisation’s pension scheme, are likely to be nudged into an opt-in decision.

The research also shows awareness of auto-enrolment is low but it is viewed as a significant change Employees also believe their employer will provide them with the information they need at the appropriate time.

Ian Mahoney, operations director, workplace savings at Legal and General, said: “Our research shows there is a significant level of trust among employees that their employer will guide them through what they clearly believe is an important change.

“This places a heavy responsibility on organisations of all sizes to make sure they deliver effective communications when implementing auto-enrolment.”

Read more articles on the 2012 pension reforms