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| Fewer opting out of pension schemes than expected | Fewer opting out of pension schemes than expected |
| (about 9 hours later) | |
| Fewer people than expected are choosing to opt out of new workplace pension schemes, a survey has indicated. | |
| The National Employment Savings Trust (Nest) found that 9% of employees chose to leave pension schemes after being automatically enrolled. | |
| Previously, the government thought that a third might decide to leave. | Previously, the government thought that a third might decide to leave. |
| According to the Department of Work and Pensions (DWP), 1.6 million workers have joined workplace pensions in the first year of so-called auto-enrolment. | |
| Under the plan, launched in October 2012, employees are automatically put into a pension scheme unless they choose to opt out. | |
| Karen Kelly, a hotel supervisor from Liverpool, is among those who have recently joined, having decided against an opt-out. | Karen Kelly, a hotel supervisor from Liverpool, is among those who have recently joined, having decided against an opt-out. |
| "It was important to do it now while I'm young," the 28-year-old told the BBC. "The longer you pay in, the more you get." | "It was important to do it now while I'm young," the 28-year-old told the BBC. "The longer you pay in, the more you get." |
| Savings | Savings |
| The Nest survey found that a third of those opting out of auto-enrolment did so because they could not afford it. | |
| Fifteen percent of those deciding not to join said they were saving through other means, while 14% said they were too close to retirement. | Fifteen percent of those deciding not to join said they were saving through other means, while 14% said they were too close to retirement. |
| Most of those deciding to stay in thought it was time to start saving for retirement. The news was welcomed by Pensions Minister Steve Webb. | Most of those deciding to stay in thought it was time to start saving for retirement. The news was welcomed by Pensions Minister Steve Webb. |
| "Over the past year we have instigated a quiet revolution that has heralded the biggest change to pensions in a century," he said. | "Over the past year we have instigated a quiet revolution that has heralded the biggest change to pensions in a century," he said. |
| The first workers to be automatically signed up to company pensions were from large firms, such as Tesco. | |
| Now smaller companies, employing a few thousand people, are joining the scheme as well. | Now smaller companies, employing a few thousand people, are joining the scheme as well. |
| Under the workplace pension scheme, employers make a contribution to workers' savings. | Under the workplace pension scheme, employers make a contribution to workers' savings. |
| When they retire, employees then use the pension pot to buy an annuity, or income for life. | When they retire, employees then use the pension pot to buy an annuity, or income for life. |
| The government hopes that eventually 6-9 million people may be persuaded to join such schemes. | The government hopes that eventually 6-9 million people may be persuaded to join such schemes. |