Older workers to shun auto-enrolment

More than 40% of people aged 55 or above intend to opt-out of auto-enrolment after its introduction in 2012, B&CE research shows.

Data from the employee benefit provider showed 10% of 18 to 34-year-olds indicated they would opt-out and 17% of the 35 to 54 age bracket would not take part.

B&CE's research also looked at why customers might opt out - 21% said they could not afford it. This marked an increase of some 17% on the previous year.

Almost a quarter said they contributed to another pension and would not take part in auto-enrolment, this was down 30% from last year.

B&CE Insurance director John Jory says: "The survey results for the higher age bands are disappointing but perhaps not surprising. However, overall the results are very encouraging in that only 28% intend to opt out but significantly this falls to only 10% in the 18-34 age group.

"For this age group, starting to save from a young age could make a major positive impact to the income they can look forward to receiving in retirement."

However, overall the research found 72% would contribute.

There were large variations on a regional basis with more than 35% in the north and Greater London regions saying they would opt out but only 15% in the areas of Yorkshire, Humberside, the South West and Wales.