UK workers seek more employer support in pension planning

Recent research by My Pension Expert has uncovered a concern among UK employees regarding their employers’ investment in their financial wellbeing. An independent survey of 2,000 UK adults showed that just 46% of those in employment, either part- or full-time, believe their financial wellbeing is of importance to their employer.

A significant number of employees (59%) expressed a desire for more active employer engagement in understanding and engaging with workplace pension schemes. Furthermore, a larger percentage (73%) is advocating for an increase in the minimum contributions employers are mandated to make to employees’ workplace pensions, which currently stand at 3%.

The concern arises at a time when over half (52%) of employees admit to not engaging in any pension planning beyond their enrollment in workplace pension schemes. Moreover, less than one fifth (19%) have checked their workplace pension in the last month, and only a combined total of 54% have reviewed it in the past six months. Disturbingly, 12% are unsure about whether they have a workplace pension or the extent of their contributions to it.

Lily Megson, policy director at My Pension Expert, stated: “The demand for more support in retirement preparation is clear. Employers have a significant role in securing their employees’ financial futures, making it imperative for them to enhance the support offered.

“The issue of disengagement with pension planning in the UK poses a risk of insufficient retirement savings. Despite being designed to mitigate this, the auto-enrolment scheme may inadvertently promote a checkbox approach to pension planning among employers and employees alike.

“There is a pressing need for employers to improve educational efforts and support surrounding retirement planning, pension contributions, and financial management. Additionally, the government’s role is crucial in not only aiding UK adults to understand and maximise their pension benefits but also in facilitating access to financial advice, ensuring individuals can make well-informed decisions about their retirement planning.”