Tuesday, 15 April 2014 08:26
Forecast: number of auto-enrolment opt outs to fall
Only 15% of workers will opt out of auto-enrolment according to the latest forecasts – half of the original prediction.
The Government scheme is set to lead to around nine million pension savers saving for the first time or to save more, the Department for Work and Pensions said.
The reforms of workplace pensions will lead to around one million more savers than previously forecast, officials have reported.
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The latest evidence on opt outs has resulted in the DWP greatly reducing its forecast from a 'cautious' initial estimate of around 30% to just 15%, for the lifetime of the programme.
This equates to around a million more people saving on top of the millions already predicted.
New DWP research has revealed that opt outs among the biggest firms stands at 9% to 10%.
Minister for Pensions Steve Webb said: "Automatic enrolment is proving significantly more successful than previously predicted. "With opt outs remaining low we now expect 9 million people will be newly saving or saving more as a result of our reforms.
"Our reforms to pensions are working and have already proved a success. Now this is an extra million savers who will be helping to secure a better future for themselves and their families.
"Ensuring people can plan for their retirement is crucial to building a stronger economy."
Figures from The Pensions Regulator, released yesterday, show 3.2 million have been enrolled into a pension and nearly 11,000 employers have now registered.
The department's research also showed that the percentage of private sector employees who are members of a pension scheme rose from 26% in 2011 to 35% in 2013.
The Government scheme is set to lead to around nine million pension savers saving for the first time or to save more, the Department for Work and Pensions said.
The reforms of workplace pensions will lead to around one million more savers than previously forecast, officials have reported.
{desktop}{/desktop}{mobile}{/mobile}
The latest evidence on opt outs has resulted in the DWP greatly reducing its forecast from a 'cautious' initial estimate of around 30% to just 15%, for the lifetime of the programme.
This equates to around a million more people saving on top of the millions already predicted.
New DWP research has revealed that opt outs among the biggest firms stands at 9% to 10%.
Minister for Pensions Steve Webb said: "Automatic enrolment is proving significantly more successful than previously predicted. "With opt outs remaining low we now expect 9 million people will be newly saving or saving more as a result of our reforms.
"Our reforms to pensions are working and have already proved a success. Now this is an extra million savers who will be helping to secure a better future for themselves and their families.
"Ensuring people can plan for their retirement is crucial to building a stronger economy."
Figures from The Pensions Regulator, released yesterday, show 3.2 million have been enrolled into a pension and nearly 11,000 employers have now registered.
The department's research also showed that the percentage of private sector employees who are members of a pension scheme rose from 26% in 2011 to 35% in 2013.
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