Over half of SMEs worry that employees are not fully engaged with their workplace pension, according to People’s Pension.
According to new research, employers are increasingly recognising their role in improving engagement and taking steps to support better long-term saving outcomes. It found that around 59 per cent of SMEs are worried that employees do not fully understand the value of their pension as part of their overall reward package.
Meanwhile, around 62 per cent fear financial pressure could result in higher opt-out rates.
But a quarter say they would like to see regular education sessions, webinars or workshops delivered by their pension provider. It also found that half do not believe providers are communicating effectively.
According to People’s Pension, the research also shows that employers are increasingly embracing their broader responsibility in supporting financial wellbeing. Around 82 per cent believe it is their responsibility to help employees have a financial plan in place for retirement, even in a period of increased cost pressure.
The research suggests that improved communication is seen as a practical step towards strengthening both engagement and retention. It found that 45 per cent say better communication or education for employees would make them less likely to switch pension provider, underlining the link between engagement and perceptions of overall value.
People’s Pension distribution director Stuart Reid: “Over the past decade, we’ve seen a real shift in how employers approach workplace pensions. 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.
“But there is still a final piece of the puzzle. 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. Small actions, like taking the time to understand your pension or increasing contributions where possible, can make a significant difference over time.”
