According to a survey carried out by Corporate Benefits at Friends Life, 26% of people would choose to opt out of a workplace pension scheme. The survey also found that 35% of those who did enrol would be unwilling to contribute any more than 5% of their monthly salary. This is despite only 14% of recipients thinking that saving 8% (the total level auto enrolment will reach) would provide for a comfortable retirement.
20% of those questioned said that they would not persuaded as even a 1% deduction could mean that they would struggle to make ends meet. However, 41% said increased tax relief would encourage them to save more for retirement.
“Unfortunately, as people are struggling financially in the tough economic climate, they are understandably focusing on paying the bills today rather than providing for the future,” comments Dr Geraldine Kaye of GAAPS Actuarial.