NAPF research: Over half of employees are likely to stay in the pension when auto-enrolled

As many as 57% of employees said they are likely to stay in the pension that they are automatically enrolled into from October 2012, according to research by the National Association of Pension Funds (NAPF).

Among these pro-enrolment workers, 49% think it is a good deal to get 3% in contributions from the employer.

However, the research found that one in three employees are likely to opt-out of a workplace pension: 48% of respondents eligible for auto-enrolment said they would opt-out because they could not afford the contributions.

One-third (29%) do not trust the government. Just over a quarter (26%) said they do not trust the pensions industry.

Joanne Segars, chief executive at the NAPF, said: “People are wary of pensions and that is a big threat to auto-enrolment.

“We are alarmed that so many said they will reject the new deal, and the picture has got worse since the recession.

“The pensions industry has to be much more up front about what it is doing. People need information about their pension in a form they understand. That means pounds and pence, not basis points and unit prices.

“With auto-enrolment just around the corner, the industry needs to do more to help people engage with their pension.”

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