Workers to opt out of pensions

Small firms expect workers to opt out of pensionsSmaller employers expect more of their staff to opt out of saving for their pensions once minimum deductions from their pay packets are increased this April. According to a survey by the Association of Consulting Actuaries, 65% of businesses employing fewer than ten people expect modest or substantial decreases in participation. The Department for Work and Pensions estimates about 6.1m employees face a cut in their take-home pay when pension deductions under the automatic enrolment rules are increased. Minimum employee contributions are due to be raised from 3% of eligible pay to 5% in April, while employer contributions are due to be raised from 2% to 3% at the same time.