A total of 44 per cent of pension savers are still unaware that they have tax relief entitlements on their workplace pension savings according to research from B&CE.

A survey of 1,002 consumers found that 38 per cent were totally oblivious as to how their contributions will be invested by their provider.

Sixty per cent of those with little financial knowledge said that they are risk averse with regards to their pensions and 30 per cent of those with good knowledge said the same.

B&CE director of customer solutions Jamie Fiveash commented: “Automatic enrolment has come a long way in trying to get the message across to the UK workforce that planning for retirement is absolutely crucial and a workplace pension is one of the most cost-effective ways of achieving that goal.

“This research backs up our knowledge and understanding of pensions is generally low. For now we need to get people saving towards their retirement and automatic enrolment is helping to achieve this goal. It is essential that we improve levels of understanding, so that employees can make informed decisions about their future. We believe simple and engaging communications will be the key to meeting this challenge.”

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