Some 59% of employees are unaware of how much their current employer contributes towards their pension, according to research from life insurance, pensions and asset management provider Aegon.
The study, which surveyed approximately 3,000 adults, also found that two in five (41%) of respondents do not know how much they are paying into their pension pot.
The research also found:
- 62% of respondents are influenced by the quality of a workplace pension when looking for work.
- 19% believe it is essential that their employer has a good offering for retirement saving.
- 56% of respondents will rely on a workplace pension as their main financial lifeline when they retire.
- 93% will miss their financial retirement objectives.
- 21% consider a good workplace pension a ‘major influence’ in their job search.
- Engagement with workplace pensions is high in the IT sector, with just 25% of those surveyed unsure how much they contribute to their workplace pension each month. This is closely followed by enigneering, manufacturing and production workers at 24%.
- More than half (53%) of those in the hospitality and events industry do not know how much they contribute, and 47% of respondents in the retail sector remain unsure.
Angela Seymour-Jackson, managing director of workplace at Aegon UK said: “It’s good to see people taking into account the quality of a pension scheme when considering a prospective employer, especially when over half of those in work are expecting it to be their main source of financial support in retirement.
“Across the board, employers should think carefully about how they can ensure staff make the most of their pension, and should be speaking to their employees much more regularly about their joint contributions.
“Traditionally, people have just received an annual statement, which is all too easy to file away and does little to plug this engagement gap.”