Ryan FowlerTwo in five UK workers do not know how much they are contributing to their workplace pension, according to new findings from Scottish Widows’ Retirement Report.
The research highlights widespread disengagement with retirement savings, a decade after the introduction of Pension Freedoms. It shows that 43% of workers are unaware of their own contribution levels, while 54% do not know how much their employer adds to their pension.
Confidence in managing retirement funds remains low, with 36% of workers saying they do not feel confident in their ability to manage their pension savings. Despite this, financial advice remains under-used. Just 20% of workers have spoken to a financial adviser, and only 8% have asked their employer for support.
The report findings are consistent with recent analysis from the Pensions Policy Institute, which revealed that 70% of defined contribution savers fully withdraw their pensions without any financial advice.
Pete Glancy, head of pensions policy at Scottish Widows, said: “With so many workers in the dark on their workplace pensions, it’s little surprise that confidence is low. There is a clear need for better support for workers, from the start of their savings journey, engagement during their working career right through to the point at which they access their retirement pot.
“Since the introduction of Pension Freedoms in 2015, more people have taken advantage of the option to withdraw their pension as cash. Whilst this flexibility can be beneficial, rushing into withdrawals risks depleting retirement savings too soon, if not done cautiously.
“For those who have the means, seeking financial advice is invaluable – offering structure, reassurance, and a plan tailored to peoples’ needs. At the same time, the onus is also squarely with providers who must do more to engage savers early, and make pension information more accessible, ensuring future generations are better equipped to make informed decisions.”
