Less than half of defined contribution scheme members are confident their pension will provide an adequate retirement income, according to a survey published by consultants Hymans Robertson.

The survey reveals widespread confusion around pensions, with less than a third knowing how much they would need to live on in retirement. Nevertheless, 57 per cent of DC members doubted their scheme would provide enough.

“A step change is required in the way DC is delivered for savers as in its present form it's not fit for purpose,” said Hymans Robertson partner Lee Hollingworth.

More than half of those responding said the information they received about their pension was too complicated, and almost a quarter (23 per cent) did not know how much of their current monthly salary they would need to contribute to have an acceptable standard of living in retirement.

“The majority of those DC savers who took part in our research have taken a conscious decision to save for retirement, and if these people are not engaged with their pension, it will be a huge struggle to engage the millions of people enrolled into a DC scheme through automatic enrolment.”

More than half (57 per cent) said they would be more proactive in planning for retirement if the information was clearer.

Hollingworth added: “Current methods based on education to facilitate a 'DIY' approach are doomed to fail as the majority of savers are not well placed to manage their own plan and need stronger direction and supportive guidance.

“Member communications from Trustees and employers need to simply focus on the desired target, progress to date, required actions to stay on track and also the consequences of taking no action.”

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