Recent research has found that employees are keen to save for their future and would be quite likely to contribute more than the bare minimum to a savings and pension scheme.
Conducted by Standard Life, the study comes amid the government's plans to introduce auto-enrolment into retirement savings. It found that Britons are keen to save more money and would want to take part in such a scheme but that they require clearer communication and guidance in order to do so.
In fact, the opt-out rates could be as low as 18 per cent if the government and employers are able to structure the system well and communicate the benefits clearly to individuals. Furthermore, 31 per cent of employees surveyed who plan to stay enrolled in the scheme would be willing to pay more than the basic four per cent contribution rate and would also want to increase their contributions automatically whenever they received a pay rise.
David Nish, chief executive at Standard Life, commented: “We believe that auto-enrolment can help re-introduce a savings culture in the UK and be an important first step in bridging the savings gap.
“It may seem obvious, but carefully designed communication is essential in achieving results. By presenting information about auto-enrolment ... which provides a clear picture of the value of employer contributions and the tax advantages, our research found that 82 per cent of people would remain enrolled in their pension scheme.”
