Fewer than a third (27 per cent) of workplace pension scheme members are satisfied with their contribution levels, a report from Nudge and the City of London Corporation has found.

The joint Workplace Financial Wellbeing report highlighted a ‘significant’ gap between what employers believe about their workforce’s financial confidence and employee’s reality.

It warned that immediate financial pressures were preventing many workers from effectively planning for the long term.

A minority were satisfied with their pension contributions, while 41 per cent either did not know whether they were saving enough for retirement or did not understand how their pension worked.

The analysis highlighted the link between financial literacy and financial resilience, noting that employees with lower levels of financial literacy were substantially more likely to have no pension fund.

It found that a third (33 per cent) of employees with ‘lower’ financial literacy were not contributing into a pension scheme.

“Improving workplace financial wellbeing is essential for delivering the UK’s broader growth agenda,” the report stated.

“Initiatives such as the Mansion House Accord illustrate how workplace pensions can mobilise investment in UK businesses, infrastructure, and high-growth sectors.

“Achieving this depends on employees engaging with their pensions, saving adequately, and making informed long-term financial decisions.

“Without enhanced financial capability and robust workplace support, the UK risks missing opportunities which could constrain productivity, innovation, and competitiveness.”

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