52% of SMEs worried staff do not engage with workplace pensions, research finds

More than half (52%) of small and medium-sized enterprises (SMEs) were worried that employees were not fully engaged with their workplace pension, research from People’s Pension found. 

59% were concerned staff did not understand the value of their pension as part of their overall pay and benefits. 

Over six in 10 (62%) employers said they were concerned financial pressures could lead to more people opting out, highlighting ongoing worries about engagement and saving.

A quarter (26%) of employers said they wanted to see regular education sessions, webinars or workshops delivered by their pension provider. 

49% did not think providers were communicating as well as they could, showing there was still work to do on explaining pensions.

82% of SME decision-makers said they felt responsible for helping staff have a financial plan for retirement, even with rising costs. 

Nearly half (45%) said better communication or education for employees would make them less likely to switch pension provider, showing a link between engagement and how employers saw value.

Stuart Reid, distribution director at People’s Pension, said: “Over the past decade, we’ve seen a real shift in how employers approach workplace pensions.