Businesses need to do more to help apprentices and younger employees understand pensions, according to the government’s Money and Pensions Service (MaPS).
A survey by the public body found only one in 10 younger people answered four basic questions on pensions correctly. A higher number — 13 per cent — failed to correct answer any of these four questions, which were presented in a true / false format, indicating significant confusion about these savings issues.
These figures contrast sharply with the knowledge that young people profess to have on this topic, with half (50 per cent) of young people saying they understood the basics of pensions ‘very’ or ‘fairly’ well, according to MaPS research.
To try to bridge this knowledge gap MaPS is encouraging businesses which offer apprenticeships to encourage young starters to learn about pensions and other financial issues. This coincides with National Apprenticeship Week, which runs from 10 – 16 February, which this year is themed on ‘skills for life’.
To support businesses with this, MaPS has a range of resources online including a guide on improving financial wellbeing for younger employees. MaPS research has also shown that people who enjoy good financial wellbeing are more productive at work.
MaPS head of money and pensions policy Jackie Spencer says: “National Apprenticeship Week is the perfect time to remind young people becoming apprentices to consider their pension, and businesses have a part to play in this.
“Supporting young apprentices by teaching them about how pensions work means explaining that they can opt-in even if they don’t meet the criteria.
“In doing so, businesses are putting their employee’s wellbeing at the forefront of your organisation, leading to an overall positive experience for your staff and increasing retention.”
