17 April 2014
This takes its projection of new pensions savers as a result of auto-enrolment up from 8 Million to 9 Million. The revision comes after opt-outs from the largest schemes were discovered to be just 10 percent. It must be understood that ‘opt-out’ has a very definitive meaning in regards to auto-enrolment. It refers to somebody who stops pension saving within one month of being auto enrolled. Someone who discontinues contributing after this period is not classed as an ‘opt out’ but regardless is still not saving for retirement. Caution must therefore be taken when interpreting opt-out rates. These figures need to be checked against the number of active pension savers, to get a true representation of how many people are slipping through the net.
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