Two in five UK workers (43%) are unaware how much they are contributing to their workplace pensions.
More than a third of workers, 36%, also say they don’t feel confident about their ability to manage their retirement savings.
The figures have been published in Scottish Widows' latest Retirement Report, which also revealed that formal financial advice remains an under-utilised service.
Just one in five workers have sought help from a financial adviser for guidance on managing their finances, and fewer than one in ten, 8%, have approached their employer for support, according to the study.
The research echoes the latest findings from the Pensions Policy Institute, which revealed that 70% of defined contribution savers fully withdrew their savings without any sort of financial advice.
Pete Glancy, head of pensions policy at Scottish Widows, said: “With so many workers in the dark on their workplace pensions, it’s little surprise that confidence is low. There is a clear need for better support for workers, from the start of their savings journey, engagement during their working career right through to the point at which they access their retirement pot.”
He said that since the introduction of Pension Freedoms in 2015, more people have taken advantage of the option to withdraw their pension as cash. He warned that while the flexibility can be beneficial, rushing into withdrawals risks depleting retirement savings too soon, if not done cautiously.
Mr Glancy added: “For those who have the means, seeking financial advice is invaluable – offering structure, reassurance, and a plan tailored to peoples’ needs.”
He said the onus is squarely with providers who must do more to engage savers early and make pension information more accessible.
• The research was conducted online by YouGov across a total 5,167 nationally representative adults aged 18+ in the UK between 22 January – 11 February. It included a boost of 445 adults aged 18+ to better understand the retirement prospects of minority ethnic groups, also weighted to be representative of the UK minority ethnic population aged 18+.
Promote your vacancy to thousands of professionals on Financial Planning Jobs
Our specialist jobs service Financial Planning Jobs can help you reach nearly 12,000 financial professionals. You can set up an Employer Profile and post your job the same day on Financial Planning Jobs (terms apply). Dozens of Financial Planning and Paraplanning firms have used our affordable service to recruit new talent.
