On the go: Across the UK, there are huge gaps in pensions knowledge, with 35 per cent of people unaware that the government contributes to pensions through tax relief.
This finding from The People’s Pension survey of more than 2,000 pension savers is an indictment of long-standing poor communications from the government, employers and the pensions industry.
One in 10 people do not know that their employer pays into their workplace pension, while nearly half (48 per cent) of people do not know how much their employer is paying in.
However, there is one bright spot in the report, which shows that 79 per cent of savers agree that it is now easier to save for retirement because the money comes straight out of their wages.
Commenting on the survey findings, Gregg McClymont, director of policy at The People’s Pension, said: “It’s encouraging that the vast majority of people see the positives of saving into an auto-enrolment pension, but as we head towards April’s increases, there’s work to do to ensure savers are getting the full picture."
He added: “There is always a risk that people may choose to stop contributing if they aren’t aware of the advantages that saving in to an auto-enrolment pension brings. At a time when millions of people in the UK will be under-pensioned if they rely just on the state pension, getting this message across is crucial.”
