More than a quarter (26 per cent) of UK workers do not know how much they contribute to their workplace pension each month, research from Standard Life has revealed.

The research found that, while 74 per cent of those surveyed don’t know how much they pay monthly into their workplace pension scheme as a percentage of their salary, certain demographics are less knowledgeable about their contributions.

It discovered that 77 per cent of male workers know the amount they contribute, falling to 71 per cent among female workers.

An age differential was also discovered, as 81 per cent of 18-34-year-olds reported knowing how much they pay in each month, compared to 71 per cent of 35-54-year-olds and 69 per cent of over 55s.

Standard Life also found that those with lower incomes were less aware of how much they are paying into their workplace pension, as 55 per cent of those with an income of between £10,001 and £20,000 a year know how much they pay on a monthly basis as a percentage of their salary, compared to 75 per cent among those with an income of between £20,001 and £30,000 a year.

In addition to this, the research highlighted misconceptions surrounding auto-enrolment contribution levels, revealing that 19 per cent of workers did not know they could increase their pensions contributions.

The research also discovered demographic differences in contribution rates, as men were found to be more likely to increase their contributions than women (33 per cent vs 25 per cent), as were younger age groups, with 33 per cent of 18-34-year-olds regularly paying in more than the minimum, compared to 28 per cent of 35-54-year-olds and 22 per cent of over 55s.

Standard Life managing director for customer savings and investments, Jenny Holt, commented: “Since it was introduced ten years ago, auto-enrolment has embedded a savings ethos in UK workplaces, and normalised pension saving.

“It has created a culture where close to 80 per cent of workers are now automatically saving into a pension and putting money away for retirement each month, compared to just 47 per cent back in 20122, and this is hugely positive.

“There is, however, still room for improvement, particularly in terms of improving knowledge and engagement levels across all demographics.

"Employers ensuring their communications around retirement savings are regular, targeted and relevant is a great way to boost engagement and supporting employees with wider financial wellbeing can have a knock-on effect on preparedness for retirement.

“With higher levels of engagement and understanding, more people can make informed decisions around how much they want to contribute and are fully aware of options they have.

“The Pensions and Lifetime Savings Association are running the UK’s first ever Pensions Engagement Season this autumn and winter, which includes a series of initiatives aimed at making pensions more accessible and understandable for savers.

"The campaign could be a great tool for employers to kick start their engagement strategies.”

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