Pension advice failing to reach savers

Nearly half of workplace pension scheme members do not remember receiving any communications about their retirement savings in the past year. Most who do receive messages take no action on the information.

Like Minds, a pensions communications agency, surveyed over 2,000 members. Their findings revealed that 44% could not recall any pension-related messages in the last 12 months. Among those who did, only 21% followed the suggested steps.

While 72% of respondents said they understood their pension, just 53% felt confident planning for retirement. Another 61% expressed a desire to learn more, showing a clear gap between knowledge and preparedness.

Jeremy Petty, the agency’s director, called this gap a major issue for the sector. He warned that without intervention, it could lead to serious consequences.

Members want communications tailored to their personal situations. Though 71% said pension messages should reflect individual needs, only half believed the information they received met those expectations. Even fewer—40%—felt the messages were truly personalized.

The problem is not the quantity of communications. Petty noted that members do not need more messages, but ones that feel relevant. He explained that people seek answers to their specific questions at different life stages and guidance on next steps. Effective pension communications should help individuals understand what their pension means for their future and translate that understanding into confidence and action.

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A 2022 study by the Pensions Policy Institute found similar patterns. Engagement often stalls when information feels generic or disconnected from personal goals. The current shift recognizes that employers, not just providers, must help close this gap.

Employers may be best positioned to deliver the personalized support members need. They have direct access to scheme members and a better grasp of their workforce’s needs. This proximity is significant: 42% of respondents said they would first turn to their employer for pension or retirement information.

The challenge involves more than sending the right message. Timing, tone, and trust also matter. A report from the Financial Conduct Authority last year found that younger workers engage more with pension communications when they come from a familiar source, such as their employer, rather than an impersonal provider. That trust must be built through consistent, relevant, and useful information.

Confidence in retirement planning has remained stagnant despite expanded auto-enrollment. The issue is not awareness but relevance. Until communications shift from generic updates to meaningful guidance, the gap will persist.

Employers can play a central role in this change. Recent reforms have given them more tools to support workers, but success depends on how well they use them.