More than one in five company pension scheme members – the equivalent of 2.3 million workers – are disappointed with the performance of their retirement savings, new research from employee benefits consultancy Portus shows.
Its nationwide study shows 21% of employees are concerned about the performance of their company pension scheme over the past two years and that worries about how funds perform are deterring workers from retirement saving.
Portus’s study shows around one in 20 employees have not joined schemes because of worries about how their money is invested.
Government data shows membership of workplace pension schemes is at a record high, with more than 33.5 million now signed up, including 11.1 million active members.
However, Portus, which offers the employer-paid RetirePort guidance service for employees through their workplace, believes employees would benefit from increased support and guidance on their retirement saving options to support further expansion of workplace pension schemes.
Its research shows just 26% of employees receive guidance or advice on retirement planning at work – 11% of employees have regular one-to-one meetings with advisers, while 15% have access to online support through their employer.
Around 27% of workers say they would welcome guidance from their employer on retirement planning while a third (33%) say they would be willing to source and pay for independent financial advice.
Portus Consulting Commercial Director Steve Watson says: “Action to tackle the UK’s problem with retirement saving including workplace auto-enrolment is definitely working with pension scheme membership at an all-time high.
“But the missing link is that employees are being left to their own devices and significant numbers are disappointed with pension savings while others are being deterred from even starting to save.
“Employers can play a role in helping to provide guidance on long-term retirement planning but clearly need support in delivering it as the costs can deter employees as well as employers.”