One in 25 to opt out of workplace pension when contributions rise

Quarter of retirees in “substantial debt”

Hannah Godfrey
clock • 2 min read

Only one in 25 (4%) of people said they would opt out of their workplace pension when contributions increase in 2018 and 2019, according to research from Aviva.

Half (50%) of the 2,007 people surveyed said they would definitely stay opted in, leaving one-third (34%) of employees unclear on what they would do, and one-in-eight (12%) saying they would at least consider leaving their pension scheme. In April 2018, minimum pension contributions are set to rise from the current 2% (typically 1% employer and 1% employee) to 5% (3% employee, 2% employer). Then, in April 2019, they will increase again to 8% (5% employee, 3% employer). Aviva managing director of workplace benefits Colin Williams argued "huge positives" could be taken from its findings...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Retirement

PA360: Crucial advisers can spot all vulnerability characteristics

PA360: Crucial advisers can spot all vulnerability characteristics

‘It is highly likely people in decumulation will have a vulnerability’

Hope Coumbe
clock 26 April 2024 • 1 min read
Inflation shocks driving another long uptick in annuity sales

Inflation shocks driving another long uptick in annuity sales

‘Customers should be careful that this is the right decision for them’

Hope Coumbe
clock 23 April 2024 • 1 min read
Advisers warn market volatility will threaten retirement plans

Advisers warn market volatility will threaten retirement plans

More than half expect clients to postpone or change plans

Isabel Baxter
clock 26 March 2024 • 2 min read