Research conducted by Standard Life, suggests that the new auto-enrolment pension scheme, being introduced by the Government in 2012, could create another 6 million savers in the UK and generate £12.5 billion per year to the retirement savings by 2017.
The Keep on Nudging report, which was developed with academics from the University of Edinburgh, surveyed more than 600 workers who were paid between £18,000 and £45,000 a year. 
48% of those questioned said that they would easily be able to save £50 a month towards their pension and 70% said that they would be able to find the money if they had to.
However, the report also highlighted that communication would be key to the auto-enrolment scheme’s success, as 82% of employees who took the survey said that they would not opt out of the scheme if information was presented ‘clearly and effectively’ to them.
The study also discovered that just over a quarter of workers who didn’t have any form of pension would most likely opt-out of the scheme, compared to the 12% who would opt-out who already had some current form of pension fund, or had held one previously. This confirmed the need for more education with regards to pensions and retirement saving.
60% of those who said they would opt-out, cited not being able to afford it as their reason, 33% said they didn’t trust the Government and 28% said that didn’t trust any pension schemes.
Professor Ed Hopkins of the School of Economics at the University of Edinburgh said in his report:
“These conclusions are taken from survey data where people were asked hypothetical questions.
“When individuals have to make crucial decisions about their own pensions, they may act differently.”
A report released in September by the Association of Consulting Actuaries (ACA), found that only 25% of employers had budgeted for the cost of staff being auto-enrolled into the new pension scheme.
Their study covered over 460 firms and discovered that larger companies expected around 17% of their employees to opt-out after the change, whilst with smaller companies the number grew to 39%.
A spokesperson for the Department for Work & Pensions was quoted as saying: “Our reforms will get millions saving into workplace pensions, many for the first time.
“It’s vital that people understand these changes, so we are working with industry and consumer organisations on ensuring people know how automatic enrolment can help them save for their retirement.”
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