Member Article

Yorkshire workers take opportunity to boost pension pots

Workers in Yorkshire are more likely than the typical UK employee to stay enrolled in a workplace pension once new pension reforms are introduced in their organisation, Aviva’s second Working Lives report shows.

Yet the benefits currently offered by employers and those most valued by staff in Yorkshire do not always correspond.

* Employees in Yorkshire are more likely than most to support auto-enrolment, with 68% believing the scheme will encourage people to save for the future (vs. 65% - UK).
* Yorkshire workers are less likely (23%) to opt out once automatic enrolment is introduced than they were at the time of the first Aviva Working Lives Report in May 2012 (38%) and in comparison to 2013’s national average (37%).
* Almost a third (29%) intend to stay in the scheme and will be pleased to have a pension (19% - UK). However, this is down 3% from 2012.
* In contrast, employers in Yorkshire are less optimistic about their employees’ response to auto-enrolment, with 22% predicting 25% or more of their staff will opt out following its introduction. However, this still compares favourably to employers’ expectations nationally: 25% of all UK employers expect to see this level of opt-outs among staff.

John Lawson, Aviva’s head of policy, Corporate Benefits said: “It is encouraging to see that Yorkshire employees are ready to make the most of the advantages auto-enrolment will offer.

“With fewer feeling held back by a lack of available cash, taking the decision to stay in their workplace scheme means that many will soon see their pension pots boosted by ‘free money’ from their employer.

“There is a really positive shift in people’s attitudes towards pension saving, which is very promising when the wider economy is still in a state of flux.

“As auto-enrolment progresses, we would encourage all employers to consider their communication strategy, so they can inform employees on a personal level about the advantages of saving – as well as receiving valuable feedback on their benefits offer.”

This was posted in Bdaily's Members' News section by Mark Lane .