A quarter of workers have no idea how much money they are currently paying into their workplace pension.
The research by Standard Life highlights some confusion still around auto-enrolment, 10 years on from its launch. The survey also found that one in five (19 per cent) had no idea that they could increase contributions to boost their retirement prospects.
However this research did point to more positive results too. Despite the squeeze on household finances Standard Life found that almost a third of workers (29 per cent) pay more than minimum contribution levels into their workplace pension.
The research found that in total 43 per cent of respondents paid the minimum amount, while 13 per cent pay the amount their employer recommends.
Standard Life says these finding highlight the need to encourage further education and engagement with AE, particularly among certain demographics. It found women and older workers were less likely to know what they were paying into a pension.
The figures show that three-quarters (77 per cent) of male workers know the amount they contribute, but this falls to just 71 per cent among female employees.
Meanwhile 81 per cent of 18- 34 year olds know how much they pay in each month, whereas just 71 per cent of 35-54 year olds and 69 per cent of over 55s say the same.
The research also found that men are more likely to increase contributions than women, as were younger workers.
Those with lower incomes are also less aware of the amount that they pay into their workplace pension. Among those with an income of between £10,001 and £20,000 a year, only 55 per cent say they know how much they pay on a monthly basis as a percentage of their salary.
However, this rises to 75 per cent among those with an income of between £20,001 and £30,000 a year.
Standard Life managing director for customer savings and investments Jenny Holt, says: “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.”
Among those who have increased their contribution levels, 44 per cent said do so because they want to put as much as they can afford into their pension for their future. Almost a fifth (18 per cent) want to benefit from compound interest, while 17 per cent pay in more because they received a pay rise.
When it comes to those who knew they could increase their contribution levels above the auto-enrolment minimums but choose not to, 39 per cent said this is because they can’t afford more than the minimum amount, 26 per cent are putting their savings towards other investments instead, such as buying a house, and 19 per cent need to use the extra money towards looking after their family. Meanwhile 15 per cent prefer to use any extra money on enjoying themselves, and 12 per cent say they have never got round to it.
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