Just a third of private sector have pensions

Ben Southwood
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ONLY a third of private sector workers are currently contributing to a pension, data revealed this morning.

But despite not paying enough in already – only 14 per cent thought their current plans were adequate – and the tough economic climate, some 63 per cent of these private sector employees told the National Employment Savings Trust (NEST) they agreed with the idea of auto-enrolment.

In fact, some 70 per cent said they would definitely or probably stay enrolled rather than opting-out of pensions minister Steve Webb’s savings policy.

Justifying this apparent discrepancy, the respondents pointed to the simple nature of the scheme, combined with the benefit of the employer contribution.

And 67 per cent said that after auto-enrolment, they would be able to stop worrying that they had not prepared for their retirement.

NEST is a low fee pension fund designed for auto-enrolment.