Pensions  

Early indications show 10% opt-outs: Nest

Roughly 10 per cent of auto-enrolled people are choosing to opt out of their occupational pension schemes so far, the National Employment Savings Trust (Nest) has said.

Speaking at the launch of Nest’s Insight report, chief executive Tim Jones said while it was too soon to draw long-term conclusions, the initial signs were looking good.

“The early indications here are that automatic enrolment is powerful,” he said.

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Mr Jones said the 10 per cent opt-out rate was typical across what Nest had seen so far, but added that individual schemes do vary.

He gave an example where the opt-out rate was closer to 50 per cent for an employer auto-enrolling its employees into a qualifying pension scheme, but said that many of those concerned had already made an active choice not to be part of a previously offered scheme that was more generous.

Steve Webb, the pensions minister, said the data was looking positive.

“It is very, very early days,” he said. “But the early signs are very encouraging. I take great heart from that.”