Workers want employers to pick workplace pensions

More than two thirds of staff prefer their employer to select their workplace pension, according to a survey.

The Pensions and Lifetime Savings Association (PLSA) poll, commissioned after the government announced a lifetime provider model, found that 69% of employees do not want to pick their workplace pension. The figure is notably higher among women, with 75% leaning towards employer selection compared to 63% of men. 

A total of 55% of employed workplace pension savers are not at all or only slightly confident in selecting a pension provider. Only 19% are extremely or quite confident in making such decisions, with 26% of men displaying higher confidence levels compared to 10% of women.

The poll also reveals that 37% of respondents believe they have the skills to compare workplace pension schemes and choose the right provider, while 31% say they do not.

When it comes to understanding workplace pension schemes, 48% of men claim proficiency compared to just 24% of women. And 44% of savers in the 18 to 24 age group are likely to express confidence in their skills, compared to 27% of those aged 55 or above.

“Not all savers are the same, from generational to gender disparities there are clear differences in knowledge, understanding and confidence,” said PLSA deputy director of policy Joe Dabrowski. 

“While the sector examines the concept of a lifetime provider, it is important that we carefully consider the implications the model may have on good saver outcomes, especially given long-established concerns about general financial literacy, as well as the average savers engagement and understanding of pensions.”