According to new data, more than six in ten employees would stay in a savings plan if their employer automatically put them in it.
The research, which was undertaken by workplace retirement and savings provider Cushon, found that number increased to 69% if the employer also contributed. While 22% aren’t sure what they would do, only about one in 10 would leave the program for good.
More than half (52%) of those surveyed would be more likely to save if their employer made a provision for them or if it came directly from their salary, as 55% said the Covid-19 pandemic (Coronavirus ) made them more aware of the importance of saving for the future. Meanwhile, 11% feel they can’t afford to put money aside right now and one in five (19%) in the UK has no savings or investment at all.
Additionally, workers aged 18 to 24 are now twice as likely to think about their future finances (58%) rather than just focusing on today (31%). Indeed, 44% of this age group have saved more than ever since March 2020, setting aside almost £ 3,000 on average.
Ben Pollard, CEO and Founder of Cushon, said it’s “great” to see attitudes towards saving slowly changing for the good and that, like with pre-auto enrollment pensions, inertia seems to play out. a big role.
He explained that he believed the UK government should seek to allow employers to automatically enroll their employees in workplace savings programs, albeit with safeguards in place, such as education on the job. savings versus debt repayment.
“We know from our research that the appetite is there among employees and even without employer contribution, the majority would remain in a plan. In the meantime, employers should consider implementing a workplace savings plan as part of their benefits package and even consider contributing, ”Pollard said.