Pensions gobbledygook causes workers to save less towards their pension, finds report
Half of workers find pensions terminology too confusing to follow – and it’s impacting their savings rates, with staff saying they’d save more if they knew what they were saving into.
This is the finding from Capita’s just-published third annual ‘Employee Insights Report’
According to its poll of more than 3,000 employees, a whopping 50% of staff said they find pensions-related terminology too confusing. But it found 45% of people would be willing to save more into a pension if they had a better understanding of how they worked.
So low is workers’ understanding, the report also found 52% of employees don’t even know how much they should be saving towards their retirement.
This is particularly worrying, as the report also revealed employees are underestimating their life expectancy by as much as 15 years.
It found only 2.3% of employees said they expect to reach 100 years of age, but the current probability is that 13.7% will.
Other highlights of the report include:
- 33% of workers worry they won’t be able to support themselves in retirement, with those aged 25-44 most concerned (40%).
- 31% of employees say they have lost sleep worrying about their finances
- 53% want financial education prior to, and at the time of retirement