This Pensions Awareness Day, research from HR and payroll experts MHR shows that 23% of employees aren’t preparing for their future with no pension plan in place
Almost one in four employees have no pension plan in place, according to a new survey by MHR International, the HR and payroll expert, despite the requirement for employers to provide and automatically enrol employees on to a scheme.
However, automatically enrolling employees doesn’t help them to better understand how pensions work or why they need them, as the research highlighted 58% struggling to understand how the schemes work and how they should contribute. “These findings show the stark reality of how unprepared today’s workforce are for their future, a concerning reality to be reflected upon this Pensions Awareness Day”, said Mark Jenkins, CFO at MHR.
A further 8 in 10 employees revealed that their employer doesn’t provide external personal finance advice as a benefit, leaving employees without the resources to educate themselves. Jenkins continued, “The onus is on employers to facilitate pensions education as part of their financial wellbeing initiatives and support the future financial security of the employees in their business,”.