Recent research shows a significant portion of UK employees are not reviewing their workplace pensions.
- One in six UK employees have never checked how much is saved in their workplace pension.
- 27% have either never checked or not reviewed their pension in the past year.
- Only 19% of employees reviewed their pension accounts in the last month.
- Many employees rely on minimum contributions and neglect further pension planning.
According to recent findings by My Pension Expert, a leading at-retirement adviser, one in six UK employees with a workplace pension have never bothered to check their savings. This statistic arises from an independent survey conducted among 2,000 UK adults, illustrating a concerning trend of pension neglect.
The data reveals that a staggering 27% of individuals with a workplace pension have either never checked their accounts or have not done so within the past year. In comparison, a mere 19% reported reviewing their pension status in the last month, indicating a lack of engagement with retirement planning.
A little over half of the population has checked their pension within the last six months, showing a disconnect between employees and their retirement funds. This trend is further emphasised by the fact that 38% of employees contribute between 8% and 10% of their monthly salary towards their pension, including both personal and employer contributions, while only 8% contribute more than 15%.
Remarkably, approximately one in eight individuals remain unaware of whether they have a workplace pension or familiar with their contribution levels. Despite this disengagement, a significant 59% of UK workers rely on their workplace pension to fund their expected retirement lifestyle.
The survey also highlights that over half of the UK workforce has not engaged in any retirement planning beyond ensuring their enrolment in a workplace pension scheme. As Lily Megson, Policy Director at My Pension Expert, articulates, “This research shines a bright and somewhat unflattering light on auto-enrolment workplace pensions.” She stresses the importance of increased financial education and the provision of pension monitoring tools to enhance engagement.
Enhanced financial education and pension monitoring support are crucial for securing future retirements.
