Two-fifths of UK workers do not know how much they contribute to their workplace pension, according to research by Scottish Widows.
Its Retirement report highlighted the situation in the UK a decade on from the introduction of the pension freedoms in 2015, with many respondents saying they feel disengaged from their workplace pension and unequipped to manage their retirement savings in general.
While 43% do not know how much they are contributing to their workplace pension, 54% do not know how much their employer contributes. More than a third of respondents (36%) said they do not feel confident in their ability to manage their retirement savings.
In addition, respondents do not appear to be making use of financial advice, with just a fifth (20%) of respondents having sought help from a financial adviser for guidance on managing their finances, and fewer than one in 10 (8%) saying they had approached their employer for support.
Furthermore, only 42% felt they had the ability, above day-to-day pressures, to save anything for retirement. More than a third (38%) felt they are not on track for a minimum lifestyle in retirement, and 66% do not think they are preparing adequately.
Pete Glancy, head of pensions policy at Scottish Widows, said: “There is a clear need for better support for workers, from the start of their savings journey, engagement during their working career right through to the point at which they access their retirement pot. Since the introduction of pension freedoms in 2015, more people have taken advantage of the option to withdraw their pension as cash. While this flexibility can be beneficial, rushing into withdrawals risks depleting retirement savings too soon, if not done cautiously.
“For those who have the means, seeking financial advice is invaluable, offering structure, reassurance, and a plan tailored to peoples’ needs. At the same time, the onus is also squarely with providers which must do more to engage savers early, and make pension information more accessible, ensuring future generations are better equipped to make informed decisions.”
