Opting out of auto-enrolment 'could have serious long-term consequences'

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Opting out of auto-enrolment 'could have serious long-term consequences'

Thu 22nd Dec 2011

People across the UK have been advised that opting out of the upcoming pensions auto-enrolment scheme could have serious and detrimental long-term impact on their financial wellbeing.

Tony Attubato, head of dispute resolution at The Pensions Advisory Service, said not joining or opting out equates to effectively giving up a proportion of your pay, as employer contributions will help supplement savings for retirement.

Indeed, not taking a long view of financial wellbeing can be a serious risk for Brits.

He commented: "You might have short-term reasons for not joining, but your long-term financial health may be damaged by doing so."

Mr Attubato added it is imperative people understand the implications of opting out of the new savings measures.

According to research recently carried out by Aviva, the introduction of the new auto-enrolment initiative is being welcomed by savers, but many believe an option to bring together disparate pension pots would further help in their saving efforts.

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