Seven in 10 workers unaware of auto-enrolment pension plans

Wednesday, 02 May 2012 10:48

By

Up to 10 million employees will be automatically enrolled in a workplace pension scheme later this year – yet 68 per cent of workers have little or no knowledge of the forthcoming changes, new research reveals.

By contrast, 70 per cent of employers are aware of the pension reforms due to start in October, according to the Aviva study.

While 43 per cent of employees currently without a pension said they would remain in a scheme once they were automatically enrolled, some 37 per cent said they would opt out, the Working Lives report shows.

Aviva’s managing director of corporate benefits Graham Boffey said: “We can’t expect an immediate step-change in how people save for their retirement – employers and the industry will need to make a long-term commitment to ensuring it’s a success.

“Companies are increasingly going to need to find relevant and compelling ways to talk to their employees about their savings and benefits options.”

Against a backdrop of economic uncertainty, almost all of the UK private sector employers surveyed for the report said their workers were critical to the success of the business.

And overall, employees seemed to be generally happy in their work – with 27 per cent polled saying they really enjoy their work and 45 per cent saying they quite enjoy their work.

But for both employers and employees the issue of money is absolutely central to their workplace relationship, according to the research.

The top five benefits valued by employees are an annual bonus, pension, health insurance, life insurance and non-financial benefits such as discounts on products, subsidised gym membership and crèche facilities.

Free pensions guide: Click here

Follow Myfinances.co.uk on Twitter: @news_myfinances

Sign up to the Myfinances.co.uk newsletter to receive the latest financial news direct to your inbox.    

 

Comments Bubble Comments

Twitter: My Finances


Join the conversation at #news_myfinances


Newsletter sign up

Interests

In addition to the weekly newsletter, which areas of finance would you like to hear from us about:

Tick this box if you would like us to send you promotions from carefully selected third parties.

By signing-up you agree to the terms of use and privacy policy.

sign-up button

Get the latest information on: