According to figures released by NEST younger workers – a quarter of whom were once expected to opt out of automatic enrolment – have the highest rate of participation. Just five per cent opt out.

NEST chief executive Tim Jones said: “We know that younger workers often think they are too young to start saving in a pension but so far this hasn’t played out. These participation figures suggest that the policy is working, particularly with the younger generations.”

Workers over 60 are much more likely to ‘opt out and miss out’ than their younger counterparts, with more than 28 per cent unenrolling themselves.

Jones continued: “Older workers who stay enrolled get money from their employer and tax relief. This can double the value of their contributions, which for many should be a no-brainer, especially compared to other saving vehicles. When they are ready to retire they can take that money as a lump sum or use it to secure an income in retirement, or both.

“What worries us is that currently around 30 per cent of workers in their 60s are opting out and missing out on a significant amount of extra money for their retirement.”