Pensions ignorance is still widespread

Julian Harris
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OVER a third of people given a defined contribution pension scheme at work have no idea how much their employer is paying into it, Scottish Widows revealed today.

While 38 per cent are clueless as to their employer’s contribution, nearly half (45 per cent) are either contributing nothing themselves or are not even aware how much they are contributing.

“There is a gap in financial education about pensions and other benefits in the workplace,” said Pete Glancy of Scottish Widows.

Even if those without a pension are prompted to begin saving via auto-enrolment and the National Employment Savings Trust (NEST), three quarters plan on putting aside under £50 per month – “significantly less than the amount required for a comfortable retirement”.

Employers need to step up and provide more assistance to their workers, the report said. Seventy per cent of respondents expect their employer to provide a pension scheme and to make payments into it, the survey revealed.

And four out of 10 think their employer should offer full financial advice.

There are strong reasons for businesses to offer such services, the report suggests. Over half (56 per cent) of employees say their employer’s pensions scheme is an incentive to stay loyal to the company, the survey said.