Workers wary of automatic pension plan

ABOUT a third of workers could drop out of government plans to automatically enrol them into a pension, research suggested today.

The survey found that 27 per cent of people thought it unlikely they would remain in the auto-enrolment schemes due to start next year, while 57 per cent said it was likely and 16 per cent were unsure.

The National Association of Pension Funds (NAPF) believes that a significant proportion of those who were undecided would also choose to opt out, bringing the total figure to about a third.

Asked why they would opt out, nearly half (48 per cent) could not afford the contributions, while 29 per cent did not trust the government and 26 per cent did not trust the pensions industry.

Researchers found 80 per cent of people want greater transparency about how pensions work and what they cost.

The Populus survey covered more than 500 adults eligible for auto-enrolment.