Workplace pension schemes are one of the most valuable employee benefits, yet many employees remain disengaged, uncertain, or overwhelmed by the decisions they need to make.
If you’re among the 85% of employers who actively promote pension guidance and support, you may be disappointed to learn that more than a third of employees say they don’t feel confident about their pension decisions. [1]
More worryingly, 38% of employees aren’t engaging with their pension scheme and 10% haven’t even logged in to check the balance. [2]
Considering that 96% of employers believe their employees understand and value their workplace pension, these statistics highlight a significant challenge for employers.
The good news is that improving pension confidence needn’t be complex.
6 simple ways to help employees feel more confident about their pension
Senior Corporate Benefits Consultant James Reid has seen how small, practical changes can improve employee engagement, financial wellbeing, and retirement outcomes.
Here are his six suggestions.
1. Speak plain English and avoid jargon
Employees are far more likely to engage when they understand what is being discussed.
- Avoid technical terminology or acronyms
- Keep language simple and relatable
- Focus on what matters to the employee
- Use real-life examples and illustrations
2. Show employees the value of their pension
Find ways to regularly highlight the real financial impact of:
- Employer contributions
- Tax savings
- Long-term investment growth
- Increasing contributions.
A personalised illustration showing the differences between contributing 5%, 8%, or 10% of salary often proves far more powerful than a document outlining product features.
3. Hold or provide access to pension guidance sessions
Many employees simply don’t know:
- Whether they are contributing enough
- Which investment fund is appropriate
- How much retirement income they might get
- What actions they should take next.
Webinars, workplace presentations, or one-to-one meetings all provide opportunities for employees to ask questions, improve their understanding, and increase their confidence when making decisions.
4. Make pension education an ongoing conversation
Employees’ financial priorities change throughout their careers:
- Early-career employees may be focused on budgeting and saving
- Mid-career employees are often balancing mortgages and family commitments
- Later-career employees may be considering retirement options and income planning.
So, for best results, keep pension engagement conversations going throughout the year.
5. Encourage employees to check their pension regularly
Many employees pay little attention to their pension until they’re approaching retirement.
Encouraging employees to log in and review their pension at least once a year can help them:
- Check contribution levels
- Review investment choices
- Update beneficiary nominations
- Ensure their retirement plans remain on track.
6. Offer access to professional advice and retirement support
Expert financial advice can help employees navigate decisions with confidence and ensure they make informed choices around areas such as:
- Retirement timing
- Pension withdrawals
- Tax implications
- Multiple pension arrangements
- Wider financial planning considerations.
Tap into National Pension Tracing Day and encourage employees to check for old or lost pots
Although National Pension Tracing Day has already taken place this year (on 25 October), the annual event is a great opportunity to remind yourself and employees to check for any lost pension pots.
Whether due to moving house or changing employers, auto-enrolment means it’s easy to lose track of savings as life moves on, which could mean missing out on thousands of pounds in retirement.
The Pensions Policy Institute estimates that there are around 3.3 million lost pension pots in the UK, containing a combined £31.1 billion of retirement savings.
The average lost pension pot is worth approximately £9,470. For those aged between 55 and 75, the average lost pot is worth around £13,620.
“Your pension could become one of your largest financial assets,” says Anthony Barrett, Senior Corporate Benefits Consultant. “So, spending a few minutes checking whether you have lost pension pots could uncover valuable retirement savings that help improve your financial security later in life.”
Engagement is built through small, practical steps
Nigel Willmott, Corporate Benefits Consultant Team Manager, summarises things neatly.
“One of the biggest mistakes we make with pensions is assuming employees need to understand everything before they act.
“The reality is that people are far more likely to engage when the ask is simple, relevant, and achievable, rather than feeling overwhelmed by the complexities of retirement planning.
“Simply encouraging employees to log in to their pension account, check their beneficiary nominations, review contribution levels, understand where their money is invested, and look at their retirement projection can make a significant difference.
“These aren’t major financial decisions, but they help employees become more familiar with their pension and build confidence over time.”
Get in touch
To learn more about how Titan Wealth can support your employees’ pension engagement and retirement planning journey, contact our Corporate Benefits team today.
Email info.wp@titanwh.com or call us on 0800 048 0150.
Please note
This article is for information purposes only and does not constitute personal financial advice. If you are unsure about whether a particular course of action is suitable for you, we recommend that you seek independent financial advice.
The value of investments and the income from them can fall as well as rise, and you may get back less than you originally invested. Past performance is not a reliable indicator of future performance. Tax treatment depends on individual circumstances and may be subject to change in the future. Tax and estate planning outcomes are not guaranteed.
Titan Wealth Planning Ltd is authorised and regulated by the Financial Conduct Authority (FCA reference number: 574458). Registered address: 101 Wigmore Street, London, W1U 1QU, United Kingdom.
