The proportion of UK workers concerned they will not be able to afford the 4% contribution to a personal account has risen, a study suggests.
According to research by B&CE Benefit Schemes, 28% of workers say they can’t, or don’t know if they can, afford the contribution, compared with 19% in a similar study in February.
B&CE says general support for the scheme, set to be introduced in 2012, remains strong but adds only a third of workers believe it will provide a reasonable retirement income.
John Jory, deputy chief executive at B&CE, says: “When money is tight there are always more pressing things to do with your wages than put it in a pension.
“So the Government should be applauded for taking action that supports savers. The launch of the personal accounts regime in 2012 will give people another simple pensions vehicle.
“We understand the saving needs of lower to moderate earners better than any other provider.
“If a scheme is going to be successful it has to have the support of both individuals and employers - we’ve shown this with our own stakeholder pension for the construction industry which offers a matching arrangement to encourage employees to save.
“People who save for their retirement should always be demonstrably better off than those who do not.”
UK workers will be automatically enrolled into a personal account unless their employer already offers a better scheme.
The employee will have around 4% of their take-home salary automatically paid into the scheme, with 3% contributed by their employer and a further 1% contributed in the form of tax relief. Employees can opt-out of the scheme.
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