01 Mar 2019

Research: Nest Insights: The Auto-enrolment experience over time

With last year’s auto-enrolment rises seeing employee pension contributions jump from 1% to 3%, many predicted large swathes of opt-outs. The same predictions are being made for this too, where next month, employees will have to contribute 5% of the earnings per month (with employers giving a further 3%).

Nest Insights: The Auto-enrolment experience over time 1

However, data from NEST reveals much more favourable outcomes.

It found that less than half of people actually noticed the rise in contributions on their pay slips last year, as well as finding that:

Only one in 20 people thought there was any impact on their ability to afford paying for a pension
Only 4% of people said rising contributions had made them consider opting out
There was no change in the percentage of people (28%) who thought they would be able to pay an unexpected bill of £300 within seven days
Three in five members said they still have savings after the contribution rises