Around a third (32%) of employee respondents cite financial constraints as the key reason for choosing not to pay into their workplace pension, according to research by Aviva.
Its Working lives report, which is based on a survey of 990 private sector employers and 4,021 private sector employees and an analysis of data from the Office for National Statistics, also found that 24% of employee respondents that turn down the opportunity to pay into a workplace pension scheme do so because they believe it is too late to start saving. This compares to 15% in 2013.
The research also found:
- 13% of employee respondents aged between 25-34 who choose not to contribute to a workplace pension do so because they feel it is too late to start saving.
- 19% of employee respondents choose not to pay into a workplace pension because they would rather use cash to fund their lifestyle.
- 74% of employer respondents that have begun the auto-enrolment process approve of making the workplace the focus for pensions savings.
- 93% of employee respondents feel the auto-enrolment process has been straightforward.
- 20% of employee respondents do not feel their employer has explained auto-enrolment in a way they could understand.
- 47% of employer respondents feel it is their responsibility to encourage staff to contribute into a workplace pension.
Andy Curran, managing director of corporate and business solutions at Aviva, said: “The Working lives findings highlight that we cannot be complacent and that the auto-enrolment journey does not end once employees start contributing.
“It is vital employees engage with the processes behind their pension. We must continue to make every effort to ensure people have all the support they need to make the most of their pension provision.”