There has been a 36 per cent rise in the number of people searching for information on how to opt out of workplace pensions
These figures were compiled from an analysis of Google searches by software provider Access People over the past year. It found that as the cost of living crisis has increased, there has been a significant increase in those looking for more information on opting out of AE pensions.
This figure is even significantly higher in certain parts of the country, with figures for Cardiff showing a 133 per cent increase in google searches on opt outs. There was also a notable increase in London (48 per cent) and Oxford (35.5 per cent).
Hargreaves Lansdown head of retirement analysis Helen Morrissey says: “The cost-of-living crisis has taken a huge toll on our finances with many people needing to make big cutbacks to their budgets to make ends meet. This increase in search traffic around pension opt outs is not surprising given these difficulties.”
However she says that this does not necessarily lead to a corresponding number of opt outs. “Opting out of pensions is a major decision that can have long-term consequences, but the reality is that some people simply have no other choice. The issue is that people may opt out with every intention of opting back in as soon as possible but life gets in the way, and they forget.”
She points out that under AE rules, people won’t get get re-enrolled for three years and in that time, they have missed out on important employer contributions, tax relief and investment growth to help boost their retirement income.
Many in the industry are calling for a change in the rule to enable companies to automatically opt people back into a workplace pension scheme sooner, or require them to flag up this issue at an earlier date.