More than three-quarters (77%) of respondents do not feel in control of their pension savings, according to research by Hymans Robertson.
Its Putting your workforce back in control of pensions report, which is based on a survey of 102 HR and benefits professionals, 2000 pension savers, focus groups, and individuals saving into its defined contribution platform, also found that 64% of respondents do not know what their retirement income will be.
The research also found:
- 71% of employee respondents think that employers should provide them with pension savings support, and 80% of employer respondents think that employees expect support from their employer.
- Almost half (48%) of employer respondents are concerned that employees will hold them responsible if they make poor retirement savings decisions.
- 51% of employer respondents are confident that the Pension Wise service will provide retirement savers with adequate guidance.
- More than two-thirds (68%) of employee respondents say that fewer changes to the pensions system would help them feel more in control of their retirement savings, 64% cite access to online tools and 72% believe that a more complete picture that includes private and state pensions would help them feel in control.
- 37% of employee respondents believe there is no point in learning about the pension system because of the frequent changes made to it.
Paul Waters (pictured), partner at Hymans Robertson, said: “The finding from our research that more than three-quarters of employees do not feel in control of their pension is striking, and highlights the need for employers to help empower their staff to take back a sense of control over their retirement saving.
“More than seven in 10 employees expect support from their employer, so employers should be investigating ways to help staff easily access information that gives them a more complete picture of their retirement future.
“Employees who understand how the choices they make now will impact their wealth in retirement will feel more in control, benefitting both employee and employer.”