Firms and workers back automatic pension enrolment
MORE than half of companies and two-thirds of workers back Government plans for people to be automatically enrolled into pension schemes, a survey suggested yesterday.
Around 56 per cent of employers supported the scheme, while 64 per cent of individuals said they were in favour of it, according to the Department for Work and Pensions.
From 2012 workers will be automatically enrolled into their company’s pension scheme, although they will retain the right to opt out.
Individuals will have to contribute four per cent of their salary to their scheme, with employers paying in three per cent and the Government topping this up with one per cent.
The minimum contribution levels have raised concerns that some firms may reduce the amount they pay into their staff’s pensions in line with the three per cent.
But the DWP research found that 94 per cent of companies that currently pay at least this level said they would maintain or increase the amount they contribute.
Three-quarters of workers said they could afford to pay four per cent of their pay into a pension, and around half of those who said they would not opt out after they had been auto-enrolled said they were likely to contribute more.
Nine out of 10 workers said they thought the contributions being made by their employer were attractive.
“With only around half of employees saving into a workplace pension, our planned reforms are needed to prevent millions of Britons facing a penny-pinching retirement,” said Work and Pensions Minister Lord Freud.
“It is encouraging that, despite the recession, the majority of employers are still in favour of pension savings.
“We will work with business and the industry to make automatic enrolment work, so we can give millions more people the chance to save, and an independent review team is currently looking at how we get the details right.”
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Weather for Belfast
Wednesday 30 May 2012
Today
Light showers
Temperature: 12 C to 20 C
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