Almost half (44 per cent) of UK employees do not fully understand their workplace pension scheme, new research by pension provider Penfold has found.<\/p>\n
This discovery \u2013 set out in Penfold\u2019s Retirement Reality Check report \u2013 revealed a clear opportunity for employers, and the pensions industry, to improve engagement and retention through clearer communications and providing workplace financial education.<\/p>\n
As part of the research, 2,000 UK employees and 500 small and medium-sized businesses were canvassed for their opinion.<\/p>\n
The report found that the majority (90 per cent) of employees said that their workplace pension influences their decision to remain in their jobs, and 88 per cent said the pension scheme is very important when deciding to join a new company.<\/p>\n
However, workers\u2019 understanding of their pensions often falls short, eroding the value of the employee perk.<\/p>\n
Almost half (49 per cent) of employees don\u2019t know where their pension pot is invested, and 58 per cent don\u2019t know the current value of their pension pot.<\/p>\n
Respondents reported receiving very little communication about their pension \u2013 for many limited to enrolment and a single annual update, with minimal explanation of contributions to whether they are on track for retirement.<\/p>\n
Explaining further, Penfold CEO and co-founder, Chris Eastwood, said: \u201cWhen communication happens once a year at most, pensions remain in the background. Employees may value them, but without understanding contribution levels, investment growth or whether they\u2019re on track, that value is reduced.<\/p>\n
\u201cFinancial confidence plays a huge role in overall wellbeing. Employees want to know how much they\u2019re saving, whether it\u2019s enough, and what steps they can take to improve their long-term position. That requires more than a compliance-driven approach.<\/p>\n
\u201cSimply offering a pension isn\u2019t enough. Employers who make pensions clearer and more visible to their teams will unlock far greater value from a benefit they are already paying for.\u201d<\/p>\n
The findings are a call to action for employers to provide better guidance and information to their workers about pensions.<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"Almost half (44 per cent) of UK employees do not fully understand their workplace pension scheme, new research…\n","protected":false},"author":2,"featured_media":14241,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[6570,6555,6571,1285,6554,6566,6552,6558,6557,6559,6553,6560,6565,6569,6561,6550,6564,6572,6563,6556,6567,6562,5,6551,6568,6,6549],"class_list":{"0":"post-14240","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-uk","8":"tag-auto-enrolment","9":"tag-employee-benefits","10":"tag-employee-engagement","11":"tag-employee-retention","12":"tag-financial-education","13":"tag-financial-wellbeing","14":"tag-penfold","15":"tag-pension-awareness","16":"tag-pension-communication","17":"tag-pension-contributions","18":"tag-pension-engagement","19":"tag-pension-investments","20":"tag-pension-knowledge-gap","21":"tag-pension-pot-value","22":"tag-pension-savings","23":"tag-pension-understanding","24":"tag-pension-value","25":"tag-pensions-industry","26":"tag-recruitment-benefits","27":"tag-retirement-planning","28":"tag-retirement-readiness","29":"tag-sme-employers","30":"tag-uk","31":"tag-uk-employees","32":"tag-uk-workforce","33":"tag-united-kingdom","34":"tag-workplace-pensions"},"share_on_mastodon":{"url":"","error":"Validation failed: Text character limit of 500 exceeded"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/14240","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/comments?post=14240"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/14240\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media\/14241"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media?parent=14240"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/categories?post=14240"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/tags?post=14240"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}