Changes to pension schemes welcomed

More than half of employees will remain enrolled in their company pension scheme when changes to pension contributions come into force in October, according to the latest research.

A survey by the Association of British Insurers (ABI) found that 53 per cent of people not already enrolled in their company's pension scheme say they will remain in the scheme when automatically enrolled in eight months' time.

The consumer survey found that the main reasons for remaining enrolled include a desire to benefit from employer pension contributions and the opportunity for added tax relief.

The ABI survey suggests that for many people, automatic enrolment in a workplace scheme is a helpful move that will hopefully bring them out of the savings stalemate.

Maggie Craig, acting director of life, savings and protection at ABI, said: "It is encouraging to see a significant amount of people already recognising the value of the incoming auto-enrolment into pension schemes. We are pleased the Government has announced a clear timetable for its roll-out."

Copyright Press Association 2012