The lack of awareness noted in the ONS Wealth and Assets Survey was highest amongst young workers. A third (33%) of those age 22 to 24 were unaware of auto-enrolment.
However, 94% of under 24s who were auto-enrolled have stayed in their workplace pension scheme.
Aegon has raised concerns about the lack of awareness of auto-enrolment amongst young people.
Steven Cameron, pensions director at Aegon said: “While auto enrolment has been a success in bringing millions more into saving for retirement, the next big challenge is to get people properly engaged much earlier with their pensions. The latest ONS figures show one third of employees aged 22-24 are unaware of their employer’s obligation to enrol them into a workplace pension scheme. However, it’s hugely encouraging to see that 94% of under 24s auto-enrolled have stayed in their workplace scheme, in line with the 95% average across all ages. Contributions made at young ages have the longest to grow so can make a real difference to ultimate retirement pots
“Saving for retirement is not often front of mind for young workers as many will be dealing with immediate priorities such as paying off student debt and saving for a house deposit.
“There is no silver bullet, but pension providers and employers should look for innovative ways to improvement engagement with their employees.”