Significant gaps remain in pension awareness and engagement 10 years after the launch of auto enrolment, according to new research.
Standard Life has found that female and lower income workers are disproportionately less likely to review their pension when compared to overall averages.
In total almost one in five UK workers have never reviewed their pension according to Standard Life. But this figure is considerable higher among women when compared to men — 25 per cent vs. 13 per cent.
Those with lower incomes are less likely to have reviewed their savings, with 34 per cent of those with an income between £10k and £20k, and 21 per cent of those with an income between £20k and £30k never reviewing pensions. In contrast just 15 per cent of those earning between £30k and £40k, and 14 per cent of those earning between £40k and £50k are in this position.
However Standard Life found that overall 20 per cent of workers say they review their pension once a year, 16 per cent do so every six months, and 12 per cent every other month.
Its research also found that the majority (58 per cent) of workers could define what an auto-enrolment pension is. However, 23 per cent incorrectly defined it, while a fifth (19 per cent) admitting they have no idea was an auto-enrolment pension is.
Standard Life managing director for customer savings and investments Jenny Holt says: “AE has been a positive initiative that has meant many people now put some money away each month for retirement.
“However, it’s clear that auto-enrolment awareness and engagement levels could be improved further, and a decade on, it could be a good time to evolve the eligibility criteria. For example, reducing the age limit to 18 and removing the lower earnings limit would mean that more people could benefit in future.
“Meanwhile, providing regular, relevant and targeted communication to employees, and offering financial education can further boost knowledge and confidence around the subject. Supporting employees with their wider financial wellbeing and demonstrating how retirement savings form a crucial part of this is a great way to boost engagement.”
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