There are high hopes that auto-enrolment into
workplace pension schemes will increase the number of workers in
the UK saving for retirement through a pension scheme by up to
9m.
But with just six months to go before
auto-enrolment commences, the outlook for the success hoped for is
fading, indicates a survey commissioned by the National Association
of Pension Funds (NAPF).
Go deeper with GlobalData
Conducted by research firm Populas, the survey
reveals that 33% of those who are eligible for auto-enrolment
intend to exercise their right to opt out.
Asked why, 40% said they do not trust the
pensions industry. This was up from 27% in October 2011 and,
stresses the NAPF, lack of trust is now the main threat to
auto-enrolment.
Of the remaining respondents intending to opt
out, 35% said it would be because they cannot afford it and 23%
said they did not trust the government on pensions.
Equally disturbing, across all workers
surveyed, 54% said they are not confident in pensions compared to
other ways of saving.
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By GlobalDataOnly 37% of respondents said they are
confident, resulting in the NAPF’s Confidence Index falling to
minus 17% from minus 6% in September 2011 and plus 5% in autumn
2010.
Minus 17% is the lowest the index has fallen
to since it was first run in 2007.
