74% of employers concerned employees not saving enough for retirement, data finds

Research from People’s Pension found that 74% of employers are concerned employees are not saving enough for retirement. 

Data showed that more than three quarters (77%) said younger workers and low earners are more exposed to financial pressure and may be more likely to stop saving as living costs go up.

A third (32%) of employers said younger employees are most likely to opt out of workplace pensions. 

The main reason given was affordability (38%), followed by understanding (24%) and perceived value (18%). 

Most small and medium-sized enterprises (SMEs) decision-makers (82%) said they feel responsible for their employees’ financial wellbeing, but 75% said rising business costs limit their ability to increase pay. 

59% felt employees do not fully understand the value of their pension, while 52% were concerned staff are not engaged with or using their pension scheme properly.

Employers said clearer communication and education would improve engagement (45%), and 40% said extra support for financial wellbeing and retirement planning is important.

Stuart Reid, distribution director at People’s Partnership, said: “Employers are clearly focused on how they can support their workforce, particularly younger and lower-paid workers who are more exposed to financial pressure.