Nearly six in 10 (59%) small to medium sized enterprises (SMEs) admitted they worry their employees do not fully understand the value of their pension as part of their overall reward package, according to new research by People’s Pension.
The workplace pension provider surveyed 500 SME decision-makers and found that 52% of respondents are concerned that employees are not fully engaged with their workplace pension.
More than four in five (82%) believe it is their responsibility to help employees have a financial plan in place for retirement, even in a period of increased cost pressure.
Two-thirds (62%) said they fear financial pressure could result in higher opt-out rates, and 26% would like to see regular education sessions, webinars or workshops delivered by their pension provider.
Almost half (49%) do not believe providers currently communicate as effectively as they could, while 45% said better communication or education for employees would make them less likely to switch pension provider.
Stuart Reid, distribution director at People’s Pension, said: “Auto-enrolment has brought millions more people into saving, and employers increasingly recognise that their role doesn’t stop at simply providing a pension, they want to help their employees understand and engage with it. We see this every day in how employers are asking for better tools, clearer communication and more support to help their employees make informed decisions about their financial future. That’s a significant step forward, and it reflects how seriously businesses are taking their responsibility.
“While employers and providers continue to improve how pensions are delivered and communicated, greater engagement from employees themselves will be key to turning participation into meaningful long-term outcomes. At a time when financial pressures are high, it’s more important than ever that saving for the future remains a priority. Taking the time to understand a pension or increasing contributions where possible, can make a significant difference over time.”
