Half of employees happy to accept rise in Workplace Pension contributions next year

A new study by Aviva has found that 50 per cent of the 2,007 people it surveyed would definitely stay ‘opted in’ to a workplace pension scheme following a rise in minimum contributions.

From April 2018, minimum pension contributions will rise from the current two per cent (typically one per cent employer and one per cent employee) to five per cent (three per cent employee, two per cent employer), followed in April 2019, by another increase to eight per cent (five per cent employee, three per cent employer).

In light of this sudden rise in contributions, roughly a third of employees (34 per cent) said they were unclear on what they would do, while 12 per cent said they were considering leaving the scheme.

Surprisingly, only one in 25 (four per cent) said they would opt out of their workplace pension altogether, showing a growing demand amongst workers to save for their retirement.

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Posted in ARA News.