Despite widespread concerns about retirement affordability, many UK workers are failing to actively engage with their pension savings, according to research from financial wellbeing specialists Wealth At Work.
The research, conducted with 2,000 UK workers with a defined contribution pension, found that one in five (20 per cent) of employees have taken no action on their pension in the past 12 months. The figure rises to over a quarter (26 per cent) among those aged 44 to 54.
Additionally, 14 per cent of employees say they never review their pension, despite over a third of employees (38 per cent) fearing they will never be able to afford to retire.
The research also showed that in the past 12 months, just two-fifths (40 per cent) of employees have checked the value of their pension, while only around a quarter (28 per cent) have logged into their pension account or app.
Just over a quarter (27 per cent) of people aged over 55 have looked at what they might have at retirement.
There is also evidence that many people lack a clear understanding of their pension and how it works, with just over a quarter of employees (27 per cent) unaware that their pension is invested.
Also a third (32 per cent) of employees say they would like a better understanding of how their pension is invested, while 36 per cent want more information about how much they need to retire comfortably.
The WaW report comes as wider industry research highlights a broader gap in financial understanding. The Money and Pensions Service estimates that around 22.5 million UK adults do not feel they understand pensions well enough to make informed retirement decisions, while around 46 per cent lack confidence in managing their money.
Jonathan Watts-Lay, director of WaW, says: “Auto-enrolment has been hugely successful in getting people saving for retirement, but engagement has not necessarily kept pace. Without regular interaction, employees may be missing opportunities to improve their outcomes which includes taking steps to address any potential shortfalls early.”
Recent research from the Pensions Policy Institute also suggests that retirement decisions are often made reactively rather than as part of a clear plan, reinforcing the need for more structured and personalised support to help individuals understand their options and make informed choices.