Marvin OnumonuTwo-fifths of workers did not know how much their employer contributed to their pension pot, new research found from the Social Market Foundation (SMF).
The SMF called for a “pension health check” scheme to be brought in alongside pensions dashboards to help deal with the retirement under-saving crisis.
The health check would offer personalised guidance to help people reach their retirement goals and make the right savings choices during their working lives.
Analysis of Opinium polling of 3,000 adults, commissioned by M&G, found around five million full time employees with a pension (22%) rarely looked at their savings, either because they had never checked them (7%) or had not done so for at least a year (14%).
Two-fifths (40%) did not know how much their employer paid in.
Nearly half (49%) of workers had not consolidated their pensions, even though they had more than one pension pot.
The Government warned that at current contribution levels only 9% of working age people would save enough for a comfortable retirement.
The SMF warned that dashboards alone would not solve the problem of low engagement and understanding.
Even if people found out they were off track, many lacked the knowledge or confidence to act.
There were also concerns about engagement, with evidence showing low usage of dashboard-type tools even with active promotion.
The SMF and M&G called for a “pension dashboard health check” from the Money and Pension Service, which would turn pension dashboard data into practical guidance for savers.
The health check would be built into the dashboard experience, offering users the option of a free, personalised session after viewing their pension information.
MoneyHelper, run by the Money and Pension Service, would deliver the first version of the service before commercial dashboard providers offered their own.
Richard Hyde, senior researcher at SMF, said: “Pensions dashboards are a welcome step forward, but information on its own won’t fix the problem.
“Millions of people are still under-saving for retirement and many barely engage with their pensions at all.
“Without follow-up support, there’s a real risk people see worrying figures and don’t know what to do next.”
Hyde added: “A pensions dashboard health check – offering additional personalised guidance – could help turn awareness into action.
“If government wants dashboards to deliver real change, it should use the employment relationship to leverage greater levels of engagement with pensions saving.”
Anusha Mittal, managing director of individual life and savings at M&G, said: “The data and research is clear – we are facing into a retirement and savings crisis, fuelled by low levels of engagement and underpinned by low financial confidence.
“Collective action is now necessary. Pension dashboards will have a significant role to play but they need to be supercharged by regular pension health checks, which provide practical and accessible guidance.
“The good news is that with the right help, a health check could turn passive awareness into confident future‑proof decisions.”
