Research by Fidelity International has found that automatic enrolment could increase the number of people joining company pension schemes by more than 40%. The report shows that company pension schemes in the UK without auto enrolment, achieve an average participation of less then 50%, but they estimate that the introduction of the auto enrolment to employer backed pensions could increase take-up to as much as 90%.
Their research also explores the attitude of British workers towards saving, and found that as many as 3.5 million employees do not take part in their company pension scheme, even though they are eligible. Nearly one in five of those surveyed admit they do not save in a company pension because they have not got around to it.
Our view
If you are forced to join, of course the numbers will go up. We have predicted all along that compulsory pensions are on their way. Watch this space.