Over half (55%) of employees in defined contribution (DC) pension schemes are aware how much they are contributing, according to research by Scottish Widows.
The Scottish Widows Workplace Pensions Report 2011 found that 45% of scheme members are either contributing nothing or do not know how much they are contributing.
Other findings include:†
- 40% of employees want their employer to provide full financial advice
- 55% want general information and guidance about retirement planning
- 56% of employees said that their employer’s pension scheme is an incentive to remain with that organisation
Pete Glancy, head of corporate pension propositions at Scottish Widows, said: “It is clear that there is a gap in financial education about pensions and other benefits in the workplace, and many employees expect a lot more from their employer than just access to a pension scheme.
“More advice and guidance is needed, not only to increase the number of people who are not saving, but also to ensure that those who are contributing are making the most of their benefits.
“In many cases, these benefits are unappreciated and not understood. With the appropriate support their retirement years can be transformed at very little personal cost.
“Often pensions are seen as too complicated yet the messages could be quite simple. Positioning an organisation’s pension as deferred pay could increase appreciation to the value of this benefit.”
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