Majority of HR professionals believe pensions are too complicated for member engagement

Two-thirds (66 per cent) of HR managers view pensions being “far too complicated” as a key barrier in getting employees more engaged with their pension, according to a survey by Cushon.

The research revealed that over a third (34 per cent) of HR managers saw low employee engagement levels as a key challenge, while a further 68 per cent believed that it is mainly younger employees who are not engaged with pensions.

The firm, which recently underwent a rebrand, highlighted that whilst auto-enrolment had solved the issue of getting more people to save into a pension, it had “done little to resolve low engagement rates”.

Furthermore, the survey also revealed that around one in three (34 per cent) find it a challenge to get employees to contribute above the minimum contribution rate.

Nearly two-thirds (65.2 per cent) stated that pension providers aren’t doing enough to introduce new and progressive products, and as a result, over half (54.4 per cent) of employers are expecting to carry out a review of their pension provider in the next six months.

Commenting on the findings, Cushon head of proposition, Steve Watson, said: “Auto-enrolment has done a great job of ensuring all workers have a pension, but over the years other rules and regulations have made pensions far more complicated than they need to be which is deeply affecting the level of engagement.

“The reality is that younger workers are not making saving for retirement a high priority. And why would they when they are more concerned about getting on the housing ladder or saving to get married or start a family?

“Taking a dual-approach to pensions and savings is becoming much more popular – offering employers accessible savings that they can contribute to alongside a pension to pay for life’s journey."

He continued: “We know from our clients that the industry is crying out for more innovation to help employees take more of an interest in their pensions and savings.

“We’re using our technology to make pensions more straight forward and easy to use and ultimately more engaging.”

    Share Story:

Recent Stories

A time for fixed income
Francesca Fabrizi discusses fixed income trends and opportunities with Goldman Sachs Asset Management Head of UK Pensions Solutions, Fixed Income Portfolio Management, Henry Hughes, in our Pensions Age video interview

Purposeful run-on
Laura Blows discusses purposeful run-on for DB schemes with Isio director, actuarial and consulting, Matt Brown, in Pensions Age’s latest video interview
Find out more about Purposeful Run On

Keeping on track
In the latest Pensions Age podcast, Sophie Smith talks to Pensions Dashboards Programme (PDP) principal, Chris Curry, about the latest pensions dashboards developments, and the work still needed to stay on track
Building investments in a DC world
In the latest Pensions Age podcast, Sophie Smith talks to USS Investment Management’s head of investment product management, Naomi Clark, about the USS’ DC investments and its journey into private markets