Employees are calling for more financial guidance at work, as under-communication reduces the impact of one of the most valuable workplace benefits.
Almost half (44%) of UK employees say they would like more guidance on their workplace pension and retirement planning, according to new research from Penfold, a leading UK workplace pension provider.
The findings come from Penfold’s Retirement Reality Check report, which surveyed 2,000 UK employees and 500 small and medium-sized businesses. The research shows that while pensions are one of the benefits employees value most, many do not feel they fully understand them.
Most employees report receiving very little communication about their pension. For many, engagement is limited to enrolment or a single annual update, with minimal explanation of contributions or whether they are on track for retirement.
As a result, employers risk paying for a benefit that staff value in theory, but don’t fully understand in practice.
“Employers are already investing significant sums into workplace pensions, yet many employees aren’t clear on how their pension works or what it means for their future,” says Chris Eastwood, CEO and co-founder of Penfold.
“When communication happens once a year at most, pensions remain in the background. Employees may value them, but without understanding contribution levels, investment growth or whether they’re on track, that value is reduced.”
The research suggests that improving engagement does not necessarily require higher employer contributions. Instead, clearer communication and accessible financial education could significantly increase employees’ confidence in their retirement savings.
“Financial confidence plays a huge role in overall wellbeing,” Eastwood continues. “Employees want to know how much they’re saving, whether it’s enough, and what steps they can take to improve their long-term position. That requires more than a compliance-driven approach.”
With 44% of employees actively seeking more workplace financial guidance, the findings point to a clear opportunity for UK employers to strengthen engagement and retention without fundamentally changing their contribution strategy.
“Simply offering a pension isn’t enough. Employers who make pensions clearer and more visible to their teams will unlock far greater value from a benefit they are already paying for,” concludes Eastwood.
To read the report in full, click here: https://getpenfold.com/retirement-reality-check/