According to a study conducted by Aviva, 37% of people plan to opt out of auto-enrolment when they are enrolled, and a further 28% would consider it.

The Working lives survey found that numbers planing on remaining in a pension scheme have dropped by 6% to 43% from last year, those choosing to opt out prioritising repayment of debts or wanting to save for a house or a holiday instead.

Potential opt-out rates are a concern: Mark Noble, Aviva’s managing director for health and corporate benefits, said: ‘Getting millions more people saving for retirement for the first time during difficult times is a real challenge – but automatic enrolment presents us with a once in a generation opportunity to get this right.

‘Automatic enrolment will only become game-changing if employers, their advisers and the wider industry create sustained communications and engagement in the workplace to encourage employees to save.’

Meanwhile, other concerns about auto-enrolment have been raised, with UHY Hacker Young claiming that auto-enrolment will damage UK business competitiveness.

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