Pensions - Articles - ONS figures show a fifth of workers are unaware of AE

 Steven Cameron, Pensions Director at Aegon comments: “While auto enrolment has been a success in bringing millions more into saving for retirement, the next big challenge is to get people properly engaged much earlier with their pensions. The latest ONS figures show one third of employees aged 22-24 are unaware of their employer’s obligation to enrol them into a workplace pension scheme. However, it’s hugely encouraging to see that 94% of under 24s auto-enrolled have stayed in their workplace scheme, in line with the 95% average across all ages. Contributions made at young ages have the longest to grow so can make a real difference to ultimate retirement pots

 “Saving for retirement is not often front of mind for young workers as many will be dealing with immediate priorities such as paying off student debt and saving for a house deposit. However, all eligible employees over the age of 22 earning over £10,000 per year are automatically enrolled into a pension scheme, with a minimum contribution of 8% going towards their future savings. This means a 22-year-old auto-enrolled on minimum wage could build a pension pot worth £106,900 by the time they reach state pension age.

 “There is no silver bullet, but pension providers and employers should look for innovative ways to improvement engagement with their employees. Regular targeted communications and the acceleration of digital engagement, such as Aegon’s personalised animated video summaries, are just some examples of how companies can adapt to the challenges faced in the current climate.”