18 June 2025

A Decade of Transformation in Pension Saving

There are almost 20 million people currently saving into a workplace pension - equivalent to two-thirds of the UK workforce - and 40% more than when automatic enrolment was launched in 2012.
 
That's a fantastic and welcome transformation of the nation's retirement savings in little over a decade, and one built on consensus and collaboration between everyone involved in pensions.
 

The Engagement Gap

But engagement with pensions is still too low. More than half the public struggle to find their pension information, and only 20% are confident they are saving enough for retirement.

Against a backdrop of rising prices and falling living standards, it's never been more important to ensure employees are engaged with their pensions and reassured about their long-term financial wellbeing.

At the PLSA, we strongly believe that people who are more engaged with their pension are not just more likely to make better decisions about how to manage it, they will also feel more confident about their future.

The Employer's Role in Pension Engagement

Employers have an important role to play in helping their members and staff with their financial wellbeing today, to provide the foundations for a healthy financial wellbeing in retirement.

Start with the Basics

It might seem obvious to anyone working in payroll and human resources, but surprisingly few people understand:
 

  • That they are automatically enrolled into a workplace pension.

  • Their contributions are boosted by their employer and the government via tax relief.

Communicating the Benefits

Think about what communications you can provide your staff to teach them how this little-understood benefit helps them. Financial information can be overwhelming, so avoid jargon and start with the basics:

  • Why saving for retirement is important.

  • That they are likely already paying into their workplace scheme (unless opted out).

  • What type of scheme they belong to and who the pension provider is.

  • For defined contribution schemes:

    • How much they contribute

    • How much the employer contributes

    • How tax relief boosts contributions

  • That their money is invested across a broad range of assets to grow and weather market volatility.

  • Whether your organisation contributes more than the legal minimum or offers a contribution-matching scheme.

  • Where to find more information:

    • Point them to the appropriate staff contact.

    • Share links to your provider’s online portal.

    • Promote free, impartial resources like the government-backed MoneyHelper website.

Supporting Financial Wellbeing in the Cost-of-Living Crisis

Helping employees with financial wellbeing doesn’t stop at workplace pensions.

You can build confidence, trust, and show your commitment to their lives outside work by providing more holistic financial guidance.

Cost of Living Guidance from PLSA

The PLSA has produced Cost of Living Guidance, useful for both pension schemes and employers. It includes practical ways to support employees, such as:

  • Signposting mental health resources.

  • Offering basic budgeting support.

  • Highlighting government benefits.

  • Educating on scam protection.

It also advises on supporting savers in retirement by providing:

  • Information on early pension access (for over 55s).

  • Guidance for those considering opting out or reducing contributions.

We recommend schemes publish this resource on their portals and work closely with employers to distribute relevant content. If you haven’t heard from your scheme, now’s a good time to reach out.

Get Involved: The 'Pay Your Pension Some Attention' Campaign

If you're looking for a fun, engaging way to get staff talking about pensions, the Pension Attention campaign is a great starting point.

Coordinated by the PLSA and the Association of British Insurers, it uses PR, digital, social, and outdoor tactics to:

  • Go beyond awareness.

  • Drive action.

  • Inspire long-term behaviour change.

Aimed at consumers aged 35 to 55, the campaign launches on 6 September during Pension Awareness Week and National Payroll Week.

Campaign Toolkit Available

You can download a free toolkit to help promote the campaign internally.

The Message: Three Simple Steps

Employers are encouraged to share this message widely:

  1. Find out if you have any lost pension pots.

  2. Log in to your pension accounts and check your retirement forecast.

  3. Picture your future self and consider what you'll need.

Help Employees Picture Retirement with Retirement Living Standards

Another powerful engagement tool is the PLSA’s Retirement Living Standards (RLS), based on research from Loughborough University.

They illustrate what common retirement goods and services cost at three lifestyle levels:

Retirement Living Standards:

  • Minimum: £14,400 (single), £22,400 (couple)

  • Moderate: £31,300 (single), £43,100 (couple)

  • Comfortable: Higher-end lifestyle including beauty treatments, theatre, and European holidays

The Minimum Standard reflects essential needs, aligning with the Joseph Rowntree Foundation’s Minimum Income Standard.

For example, a couple each receiving the full State Pension (£11,502 per year) would already meet the Minimum level. With workplace pension savings, they may move toward the Moderate level.

Customising Retirement Goals

Not all savers are the same. RLS helps individuals visualise their ideal retirement lifestyle and understand the costs behind it. Savers can gauge whether their current savings are on track for their personal goals.

Final Word: Pay Your Pension Some Attention

It’s more important than ever for employers to:

  • Help build financial knowledge.

  • Support confident retirement planning.

  • Encourage everyone to pay your pension some attention.

The above was written by Mark Smith, Head of Media and Saver Engagement at the Pensions and Lifetime Savings Association (PLSA)

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