A half (48%) of UK workers have not been sufficiently informed about auto enrolment by their employers according to new research from Office Angels.
Two-thirds (66%) of employees either don’t understand or only partially understand what auto enrolment actually is or how it will affect their salary. And with almost four in ten (38%) workers neglecting to regularly check whether they have been paid correctly, a significant proportion may not even notice that pension payments have been taken.
Overall, the research revealed a lack of understanding amongst workers: a third (31%) believe that annual income is the only factor which affects pension payments. Only half (50%) of workers understand that auto enrolment is beneficial for their future and standard of living when they retire
The research also found:
Chris Moore, Managing Director of Office Angels, said, “A shift is needed in attitudes towards pensions in the UK. HR professionals need to take the necessary steps to prepare workers for the change in pension auto enrolment — otherwise, they risk damage to their employer brand, a drop in overall engagement levels, and a breakdown of the relationship they’ve built with their employees.
“Employers must demonstrate long-term commitment in their staff, and help them to take the necessary steps to prepare for a longer future of working. As businesses can no longer use their pension scheme solely as a way to distinguish themselves amongst competitors, they also need to think creativity as to how their benefits package can stand them apart.”