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One in five workers take no action on pensions despite retirement concerns, research finds

The WEALTH at work survey of 2,000 defined contribution pension savers found that 20% had not engaged with their pension in the past 12 months.

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One in five workers take no action on pensions despite retirement concerns, research finds
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One in five UK employees have taken no action on their pension over the past year, despite widespread concerns about being able to afford retirement, according to research from WEALTH at work.

The survey of 2,000 defined contribution (DC) pension savers found that 20% had not engaged with their pension in the past 12 months.

This rose to 26% among those aged 44 to 54, while 14% said they never review their pension.

The findings come despite 38% of employees saying they fear they will never be able to afford to retire.

Engagement remained limited even among those who had taken action.

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Two in five (40%) said they had checked the value of their pension during the past year, while 28% had logged into their pension account or app.

Among workers aged over 55, just 27% had looked at how much they might have at retirement.

The research also found that more than a quarter (27%) of employees were unaware their pension is invested.

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However, there was an appetite for greater support, with 36% wanting more information about how much they need to retire comfortably and 32% saying they would like a better understanding of how their pension is invested.

Jonathan Watts-Lay, director at WEALTH at work, said: “Auto-enrolment has been hugely successful in getting people saving for retirement, but engagement has not necessarily kept pace.

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“Without regular interaction, employees may be missing opportunities to improve their outcomes which includes taking steps to address any potential shortfalls early.

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“The research findings suggest that a lack of understanding is a key barrier. Many people are not clear on how their pension is invested or how much they need to retire comfortably, which makes it harder to take meaningful action.”

He added: “This highlights the importance of financial education in the workplace throughout people’s working lives to build understanding, confidence and regular engagement with pensions.

“However, as individuals approach retirement, there is also a clear need for one-to-one retirement guidance to help people understand their options and make informed decisions when they come to access their savings.

“It can also help them decide if they need to access further support including investment advice.

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“As wider industry research has shown, including recently from the Pensions Policy Institute, retirement decisions are often made reactively. Providing structured, personalised guidance at retirement can help individuals better understand their options and turn their savings into good outcomes.”

Watts-Lay continued: “Our research findings point to a need for more proactive engagement in the workplace, particularly at key life stages and decision moments, combining ongoing financial education with personal guidance at retirement to help employees stay on track and achieve better outcomes.

“Working with trusted workplace providers helps ensure support is consistent, robust and effective.”

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