Low-paid will still opt out of pension plans

Around 40 per cent of people earning 15,000 or less said they would exercise their right to opt out of saving for retirement when the new rules are introduced, according to consultants Hymans Robertson.

Nearly a third of people across all income brackets thought they would not remain in their employer's scheme when they are enrolled. The figure comes despite the fact that 70 per cent support the move to automatically enrol workers into pension schemes, and two-thirds of those questioned do not think they are saving enough towards their retirement.

Chris Noon, partner at Hymans Robertson, said: "Proposals to automatically enrol employees into pension schemes are vital in giving people a chance to save to secure a more comfortable retirement.

"A concerted effort is required from the Government, employers and the pensions industry to do more to educate low and moderate income workers on the necessity of saving for retirement, and also the benefits of employer contributions."

From 2012 companies will begin to automatically enrol workers into their pension schemes, although people will retain the right to opt out. When the reforms are fully implemented, individuals will have to contribute at least 4 per cent of their pay to a pension.