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Millions of workers are happy to be contributing to a workplace pension

Millions of workers are happy to be contributing to a workplace pension. Fewer people than expected are choosing to opt out of new workplace pension schemes, a survey has indicated.

The National Employment Savings Trust (Nest) found that 9% of employees chose to leave pension schemes after being automatically enrolled.

Previously, the government thought that a third might decide to leave.

According to the Department of Work and Pensions (DWP), 1.6 million workers have joined workplace pensions in the first year of so-called auto-enrolment.

Under the plan, launched in October 2012, employees are automatically put into a pension scheme unless they choose to opt out.

Now smaller companies, employing a few thousand people, are joining the scheme as well.

Under the workplace pension scheme, employers make a contribution to workers’ savings.

When they retire, employees then use the pension pot to buy an annuity, or income for life.

The government hopes that eventually 6-9 million people may be persuaded to join such schemes.

Source- bbc

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