More than half of UK employees would choose to remain opted in to personal accounts when they are introduced in 2012, under government proposals for pension’s reform.
A survey of more than 33,000 people conducted by financial services firm, Legal & General, found that a third of respondents would opt out while one in five did not know what they would do.
Under the government’s proposals for pensions reform, employers will be required to auto-enrol all employees into either an existing pension scheme or a personal account, which will have a minimum employer contribution of 3% of an employee’s wage.
Adrian Boulding, wealth policy director said: “These results are very encouraging, especially when you consider how early on the government is in its communication strategy for personal accounts.”
There clearly is an appetite for the scheme but also a need for an ongoing education programme – a lot of people answered ‘don’t know’ to questions. “The government still has a job to do in informing people as to how personal accounts work and how they will benefit individuals,” Boulding added.
“Companies are gearing up for 2012, the benefits of the scheme need to be communicated now if individuals are to be in the best position to make informed choices,” he concluded.