New research indicates only 46% of UK employees believe employers care about their financial wellbeing.
- 59% of workers desire more assistance from employers to understand their pensions.
- 73% advocate for increased employer contributions to workplace pensions.
- Over half have not planned their pension beyond enrolment in workplace schemes.
- A significant portion of workers are disengaged from tracking or understanding their pension status.
New research reveals that less than half of UK employees, precisely 46%, feel their employers are concerned about their financial wellbeing. This insight stems from a recent survey conducted by My Pension Expert, involving 2,000 UK adults. The study highlights a lack of employer engagement in their employees’ financial future.
A significant 59% of employees expressed a need for more support from their employers in understanding and engaging with workplace pensions. This sentiment underscores a broader desire for educational initiatives to demystify pension planning.
Furthermore, 73% of participants believe there should be an increase in the minimum employer contribution to employee pensions beyond the current 3%. This call for action points to a growing expectation for employers to play a more substantial role in financial security.
The findings also unveiled that 52% of employees admitted they have no pension planning apart from being enrolled in a workplace pension scheme. This lack of proactive retirement planning is concerning for future financial stability.
Moreover, less than 20% of those with a workplace pension have engaged with it within the last month, and only 54% have done so in the last six months. Alarmingly, 12% of employees are unaware of their pension status or contribution levels.
Lily Megson, Policy Director at My Pension Expert, stated, “It’s abundantly clear that employees want more support in preparing for retirement. Employers play a pivotal role in shaping the financial future of their employees, so it’s crucial they answer this call by considering the support they provide.”
Despite the introduction of the auto-enrolment scheme, employees and employers often treat pensions as a formality rather than a critical component of financial planning. This approach risks inadequate retirement savings, exacerbating financial vulnerabilities as employees age.
Megson advocates for proactive measures from both employers and the government to foster a culture of informed financial planning. There is a substantial need for the government to facilitate access to financial advice and resources to assist individuals in making sound pension decisions.
It is paramount for both employers and the government to enhance support and resources for effective pension planning to ensure financial security for future retirees.
