Millions of people could be set to opt out of Government plans to automatically enrol them into a pension scheme.

A poll of over 500 people eligible for auto-enrolment, conducted by Populus for the National Association of Pension Funds (NAPF), found that 27 per cent claimed they were unlikely to stay in the scheme.

The final number could be even higher as 16 per cent said they didn’t know what they would do.

Of those rejecting auto-enrolment, 48 per cent claimed they wouldn’t be able to afford the contributions, and 29 per cent stated they would opt out because they didn’t trust the Government.

The survey also revealed suspicions about the pensions industry, with 26 per cent saying they would opt out because they didn’t trust it, while 80 per cent of overall respondents wanted greater transparency about the cost and details of pensions.

The results are bad news for the Government's auto-enrolment reforms, which aim to put all workers into a pension from 2012 in an attempt to solve the UK’s imminent pensions savings crisis.

But, if the survey is accurate, around three million of the possible nine million new savers created by the scheme will opt out.

In response, the NAPF has announced that it is convening a summit to discuss transparency and charges in the pensions industry, hoping to establish an industry code of practice.

Joanne Segars, NAPF chief executive, explained, ‘People are wary of pensions and that’s a big threat to auto-enrolment.

‘Our society is sleepwalking into a crisis because it isn’t saving enough for its old age, and auto-enrolment is meant to be a big wake-up call.

‘The pensions industry has to be much more upfront about what it is doing. People need information about their pension in a form they understand,’ she added.

‘With auto-enrolment just around the corner, the industry needs to do more to help people engage with their pension. The summit will help forge a clear direction on transparency and communication.’