Pension opt-out cuts pot by fifth

The average working man will cut his pension pot by £19,000, or 20 per cent, if he opts out of the incoming auto-enrolment pensions scheme for the first ten years of his working life, Prudential warned yesterday. However, the worker would be better off by £620 per year in terms of disposable income. “For some young people starting out in their career or building a family, taking on the additional expense of investing in a pension may not be a high financial priority initially,” said Prudential’s Barry O’Dwyer.