Growing numbers of staff will opt out of National Employment Savings Trust
David Woods, January 25, 2010
Growing numbers of staff are admitting they will opt out of the National Employment Savings Trust (NEST), formerly known as Personal Accounts, new research reveals.
A study by employee benefits provider B&CE found 72% of employees intend to contribute to the scheme. But an increasing number indicated they would opt out, up from 25% to 28%.
Regionally there are large variations within the group surveyed, with over 35% in the North and Greater London regions saying they will opt out but only 15% in the areas of Yorkshire, Humberside, the South West and Wales.
There were also distinctions within age bands, with 10% of the 18-34 age group indicating they would opt out, while 42% of those aged over 55 claim they will opt out of the pension scheme.
B&CE's research also looked at why customers might opt out and found 21% gave the reason of affordability, marking an increase of 17% on the previous year; 24% cited the fact they already contribute to another pension - down some 30% from last year.