The new system sees workers signed up to pension saving unless they choose to leave the scheme
Fewer than one in 10 workers have opted out of being automatically signed up to saving for a pension, government figures show.
More than one million people have been automatically enrolled into schemes, under a coalition policy to encourage saving.
The government initially estimated that about 25% of those signed up might take the option to leave the savings scheme.
But experts warn it is still early days for the project.
They say that a "pensions crunch" will come in early 2014, when some 29,000 medium-sized firms will join in.
Nudge to saveAutomatic enrolment started in October. A slice of an employee's pay packet is automatically diverted to a savings pot for their pension, assuming they are aged 22 or over and earning at least £9,440 a year.
Employers are obliged to pay in as well, with the government adding a little extra through tax relief.
What it means for your pay packet
- A worker who earns £20,000 a year will initially see £114.66 leave their take-home pay packet over a year (£9.55 a month)
- Along with a contribution from the employer and tax relief, this will result in £286.64 a year (£23.89 a month) going into their pension pot
- From October 2018, when the scheme is in full swing, this person will see £573.28 a year leave their take-home pay packet over a year (£47.77 a month), with £1,146.56 added to their pension pot over the year (£95.55 a month)
- This money will be invested. When this person retires, they can use this money to buy an annual pension income called an annuity
Source: Towers Watson
Those who already save in a workplace pension scheme or are self-employed are not signed up.
Experts and ministers say it is vital people make a start at an early stage in their working lives, to eventually have savings that will top up the state pension.
But staff have an option to opt-out of being automatically enrolled, if they would rather save or spend in their own way.
Now, the Department for Work and Pensions (DWP) has published its research for the first time about how the system has worked among large firms.
Data from 42 companies showed that 9% of people who would have been signed up have opted out.
Staff who work for the biggest businesses have been included in the early stages of the project.
Source: BBC News - Business http://www.bbc.co.uk/news/business-23612985#sa-ns_mchannel=rss&ns_source=PublicRSS20-sa
