Personal financial worries are to blame for dropping workplace pensions
Approximately a third (32%) of employees said financial constraints were the primary reason for choosing not to put in to their pension. According to research by Aviva, they also found that 24% of respondents turned down the option to pay in to a workplace pension because it was too late to start saving and this has increased from 15% in 2013.
The report also revealed that 19% of respondents would rather use cash to fund than pay towards their pension. 93% of employee respondents also feel that auto-enrolment process has been easy and straightforward, however 20% do not feel it has been well explained by their employer.
In addition to this, 47% of employer respondents believe it is their responsibility to encourage staff.
Andy Curran, managing director of corporate and business solutions at Aviva said: “The Working lives findings highlight that we cannot be complacent and that the auto-enrolment journey does not end once employees start contributing. It is vital employees engage with the processes behind their pension. We must continue to make every effort to ensure people have all the support they need to make the most of their pension provision.
“Changing workforce demographics present both challenges and opportunities which businesses will need to embrace, alongside efforts to help all staff save better through workplace pensions. Access to clear guidance and expert support will be vital to make the workplace savings revolution a lasting success, and ensure staff feel valued and supported throughout their working lives.”