The government have been urged by the Liberal Democrat party to provide the public with more information on auto-enrolment pensions.
Following the upcoming increase in minimum workplace contributions to pensions – from 3% to 5% – the party warn that the opt-out rate for auto-enrolment could increase. Currently at 10%, the Liberal Democrats state that unless the public is made more aware of the change, this proportion will increase as workers suddenly see a decline in their take-home salary.
Expressing the need for a national campaign was Stephen Lloyd. The work and pensions spokesman for the Liberal Democrats stated: “With wage growth still lagging behind inflation, it is understandable that many working people will be anxious not to see their pay fall further. But paying into a workplace pension now is a profit for the rest of your life. That’s why I’m calling on the Secretary of State to instigate a national publicity campaign to explain to workers what is happening and what the consequences of the different courses of action are.”
