Workplace pension opt-outs rise among younger UK job starters

Among eligible 22- to 29-year-olds who had recently started a job, 11.5% opted out of a workplace pension in the three months to December 2025, up from 6.6% in the same period of 2020. BBC News reported the figures from the Department for Work and Pensions. The rate among 30- to 39-year-olds also rose, from 7.4% to 12.7%. [1]

The increase was not confined to younger workers: opt-out rates rose in every age group shown in the DWP figures. Workers aged 60 to State Pension age had the highest rate in both periods, rising from 12.2% to 15.1%. Across all eligible ages, about 22.6 million people — 90% — were paying into an automatic-enrolment pension, while about 2.5 million were not. [1]

Hassan Nassar, a 26-year-old trainee GP in the West Midlands, told the BBC he had stopped paying about £430 a month into his NHS pension while facing family care costs, rent and student loan repayments, and saving for a first home. He planned a pause of roughly six to 12 months and estimated it could reduce his future retirement income by £5,000 to £10,000. Evie, 22, said she had opted out because she expected to struggle with costs including food, travel and £800 in rent. [1]