Levels of disengagement among members of workplace pension schemes have leapt since the introduction of auto-enrolment, according to Aviva, as 1.5m people have no idea where their retirement funds are invested.
Using figures from the Office for National Statistics, the provider found that this accounted for 15 per cent of the 9.8m people in workplace defined contribution schemes in the 2015/16 tax year, up from 9 per cent in 2012/13, when auto-enrolment was introduced.
Among employees of small businesses the figure was even higher, with almost one in five saying they were not aware of their fund choices, a figure Aviva predicted would rise as auto-enrolment continued to roll out to smaller businesses.
Of those who chose to opt out, 24 per cent said it was because they were too old to make it worthwhile. In the 25-34 age group, 13 per cent thought they were too old to start, a statistic Aviva described as “worrying”.