Analysis of Now: Pensions’ 1.7 million members shows residents of Cumbria are the most likely to opt out, with 8.2 per cent doing so. That is more than twice the rate of workers in Northamptonshire and Bedfordshire where opt-outs stand at 3.24 per cent and 3.49 per cent respectively.
After Cumbria, workers in County Durham are most likely to opt out – with 8.04 per cent doing so, followed by Tyne and Wear and North Yorkshire where 7.69 per cent and 7.63 per cent have opted out so far from Now: Pensions’ scheme.
Minimum contributions rose from 2 per cent of qualifying earnings to 5 per cent in April 2018 and will rise again to 8 per cent in April 2019. The data was taken on 2nd May 2018, so includes contribution increases.
Now: Pensions director of communications Amy Mankelow says: “With so many competing financial pressures, pension saving can be difficult. But, with auto enrolment, when you pay in, your employer pays in too. If you opt out you will miss out on that free money from your employer so it pays to stay in if you possibly can.
“It’s also important to remember that the sooner you start paying in, the easier it will be to build a healthy pension pot for the future.”