A lack of understanding could cause the auto-enrolment company pensions scheme to fail, according to new research.

A report carried out by CoreData revealed that almost half of Brits are unsure as to whether they will opt out of the new workplace pension schemes.

Just 35 percent said they were planning on taking part in auto-enrolment, while 16 per cent admitted they have already decided to opt out.

Adrian Walker, a pension expert at Skandia, said it is “concerning” that so many people still do not know what they are going to do when their employer introduces auto-enrolment.

He said: “For the vast majority of people it will be a good option and if they opt out they will be giving up free money from their company and the government.

“However, people should not assume that the minimum contribution levels proposed to be in place by 2018 will mean they are going to live the high life in retirement.”

Thomsons Online Benefits can help you find out what auto-enrolment means for you and how much it could cost your organisation.

SOURCE:
October 5th 2012
http://www.thomsons.com/page/31534/uk/events-and-knowledge/employee-reward-and-benefits-news/articles/lack-of-pensions-understanding-39could-harm-auto-enrolment39- hairy woman