Nearly 30 per cent of UK workers have not or will not join their company's pension scheme, new AXA research suggests.
This means that over five million British employees, who are entitled to join a company pension plan, fail to do so even though many employers will contribute on their behalf.
A quarter of company pension scheme members say their employer pays between five and ten per cent of their salary into the fund, whilst just over one in ten get more than ten per cent of their annual salary paid into their pensions by their employer.
Almost a third of members did not know whether their employer contributes to their pension scheme, Moneyextra reports.
Some 28 per cent of British workers who have not joined company pension schemes, said there is nothing that would encourage them to do so. Of this group, 13 per cent said they have no faith in pensions anyway.
The fact that they couldn't afford it was the excuse of 11 per cent, with seven per cent saying they are too old and another seven per cent saying they either didn't know how to join or had received no information on how to join.
Only two per cent believe they will be able to rely on the State pension to provide an adequate retirement income, compared to more than half of company pension scheme members who are confident their pension scheme will fund a comfortable retirement.
Mark Rowlands of AXA said the State pension is unlikely to provide a sufficient income to enable most people to enjoy a comfortable retirement.
He said by failing to join company pension schemes British workers are losing out financially. Mr Rowlands said a conservative guess estimates the loss at £3 billion a year, and probably significantly more.
Brits not joining pensions schemes "are losing out"
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Brits not joining pensions schemes "are losing out"
Mon, 16 May 2005
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