Nearly half (48%) of respondents do not know how much their employer pays into their workplace pension, according to research by not-for-profit pension provider The People’s Pension.
Its survey of 2,378 UK adults, including 2,009 individuals who have a pension, also found that 35% are not aware that the government contributes tax relief to their pension, and a further 55% do not know that for every £1 they save into their pension, they can receive 20p from the government. One in 10 (10%) of respondents are not aware that an employer pays into workplace pensions, as well as employees.
The majority (90%) of those surveyed see the benefit of an auto-enrolment pension, while 79% believe it is now easier to save for retirement because the money comes straight out of their wages.
Gregg McClymont (pictured), director of policy at The People’s Pension, said: “Auto-enrolment is a real success story, with 10 million more people now saving into a pension. It’s encouraging that the vast majority of people see the positives of saving into an auto-enrolment pension, but as we head towards April’s increases, there’s work to do to ensure savers are getting the full picture.
“This year’s contribution increases should see people saving thousands more, allowing them to live more comfortably in retirement.
“There is always a risk that people may choose to stop contributing if they aren’t aware of the advantages that saving in to an auto-enrolment pension brings. At a time when millions of people in the UK will be under-pensioned if they rely just on the state pension, getting this message across is crucial.”