Three quarters (74 per cent) of SME employers worry employees will not save enough for retirement as living costs squeeze disposable income, according to research by People’s Pension.
A similar proportion of employers said they are worried about younger workers (77 per cent) and low earners (also 77 per cent). More than four in five SME decision-makers (82 per cent) said they feel a responsibility for employees’ financial wellbeing, and nearly half (45 per cent) want better communication and education about pensions to improve engagement.
Stuart Reid, distribution director at People’s Partnership, says: “Employers are clearly focused on how they can support their workforce, particularly younger and lower-paid workers who are more exposed to financial pressure. As many households face renewed pressure on day-to-day finances, helping people stay engaged with long-term saving has become even more important.”
One third (32 per cent) of respondents also said younger employees are most likely to opt out of workplace pensions. Employers point to affordability as the main reason for opting out (38 per cent), although understanding (24 per cent) and perceived value (18 per cent) also play a role, reinforcing the importance of clear, accessible communication.
The survey was conducted on behalf of People’s Pension by Opinium Research, among 500 SME decision-makers.
People’s Pension is the largest commercial master trust in the UK based on members, serving 7m pension savers across the UK and managing more than £40bn in assets.