Auto-enrolment still a mystery to employees
More than half of employees are unaware of changes to workplace pensions, despite auto-enrolment beginning next month, a report by Scottish Widows has claimed.
Lynn Graves, head of business development at Scottish Widows, said this figures represents 9.9m people who are unaware of the chagnes.
The 20-page Scottish Widows Workplace Pensions Report, described the lack of awareness as shocking and said the government and industry must do more to educate people about the changes.
Ms Graves said: “With just three weeks to go until auto-enrolment comes into force, it is shocking there remains such a huge gap in awareness.”
Of those who are aware, only 16 per cent found out about the changes from their employer. Instead, nearly two thirds, 61 per cent, said they found out through the news and media.
The research found only 11 per cent of UK workers plan to opt out of auto-enrolment, with 32 per cent of them stating that the main reason for this is a concern that they won’t be able to afford the contributions.
The amount that workers are willing to pay into their workplace pensions has also doubled since last year from £37.50 a month to £76.95, according to the report.
However, Tim Jones, chief executive of the National Employment Savings Trust, said it was encouraging that so few people planned to opt out.
He added: “The messages they receive from employers and the industry about automatic enrolment must be clear, simple and constructive to help people make informed decisions that are right for them.”
Marcus Maisey, director of Hertfordshire-based KDW Associates, said: “We are planning to go out and tell our clients about auto-enrolment. A lot of companies are ignoring it until it is effectively upon us, which doesn’t bode well for the future as there is no planning.”