A third of employers are still failing to provide online access to members' pension information, despite a majority of Generation Z workers ‘craving’ digital access, it has been found.

A PwC report The virtuous circle: value for all from pensions technology published today, 31 May 2018, found that 60 per cent of Generation Z workers, those born after 1994, said they would use automated pension app advice, while 62 per cent would use online portals linked to their bank account.

The survey, which questioned over 2,000 employers and almost 100 business leaders , also found that 39 per cent of employees do not have access to tools that provide online information about their pension, while 38 per cent have never viewed their pension online.

PwC head of pensions, Jeremy May, said: “Planning for the future has never been more important and to be able to plan effectively, people need real-time, detailed access to information that paints an accurate picture of their future finances.”

The survey also found that eight out of 10 earmarking pensions technology as a “key are for investment”, despite just 39 per cent of employers are aware of new tools to help workers save more effectively.

Furthermore, more than a third of employers use email to communicate about pensions.

“Employers recognise that better engagement is needed and embracing new technology and alternative forms of communication should now be viewed as a priority. Organisations are becoming increasingly aware of what is possible but many are still slipping further behind the curve”, May added.

According to the report, pensions technology presents benefits in terms of savings, access to de-risking analysis, enhanced cyber security and improved governance, but employers must do more to understand the different requirements of each generation.

PwC pensions partner, Steve Blackmore, added: “Younger generations are used to and expect a digital approach when it comes to engaging with their finances, but when it comes to pensions many employers are lagging behind.

“New and younger recruits are only going to drive an even greater demand for this technology - generalised communications are not going to boost engagement.”

The results emerged as the latest figures for internet usage across the UK broke records, with 89.9 per cent of people regularly using the internet, in which could "revolutionise how we deal with pensions", according to Aviva.

Aviva head of savings and retirement, Alistair McQueen, said: “UK workers are increasingly turning to the internet for help and guidance with their money. Pension providers must respond to this growing internet usage, which has the potential to completely transform how we engage and manage our pensions."

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