Two thirds of SMEs say they are unable to meet growing responsibility for employee retirement outcomes

• More than half (51%) of UK SMEs believe retirement outcomes are primarily the responsibility of employers, but the vast majority (68%) believe they lack the expertise and resources to support their workers
• Seven in ten (70%) SME employers say businesses are increasingly expected to help employees achieve better retirement outcomes
• More than two-thirds (67%) believe employers are expected to support retirement confidence and decision-making, as well as broader financial wellbeing

SME employers feel increasingly responsible for helping employees achieve better retirement outcomes, but the majority say they don’t have the support available to help them meet those expectations, according to new research¹ from People’s Pension².

While more than half (51%) of SMEs now believe retirement outcomes are primarily the responsibility of employers, many feel those expectations are growing faster than the support available to them. More than two thirds (68%) believe they lack the expertise or resources to offer this wider financial wellbeing support.

Seven in ten (70%) employers say there is a growing expectation on businesses to help employees achieve better retirement outcomes, while 67% believe employers are increasingly expected to support retirement confidence and decision-making. A similar proportion (67%) say employers are also being drawn into broader financial wellbeing responsibilities beyond pensions.

The findings suggest employers increasingly see supporting employees’ long-term financial wellbeing as part of their role, while underlining the importance of providers and advisers helping them meet these wider expectations.

The research comes as the Pension Schemes Act 2026 introduces the next phase of workplace pension reform, including a new Value for Money framework and requirements for schemes to offer clear default retirement income options. As the industry places greater emphasis on the outcomes members achieve, effective collaboration between employers, providers and advisers will become increasingly important.

Stuart Reid, Distribution Director for People’s Pension, said:

“It’s encouraging that so many employers recognise the role they can play in helping their employees retire well and with confidence. But many also feel they’re being asked to do more without necessarily having the expertise or resources to do it, and that’s where providers need to step up – with better products, simpler member journeys, and support that looks beyond just the financial side of retirement.

“The numbers are obviously important, and good tools and guidance can make it much easier for people to understand what they can afford. But there’s much more to a good retirement than working out the maths. People need to think about what they’re actually going to do with their time, what will give them a sense of purpose, and what responsibilities they might still have to others. Employers can help people start thinking about those questions, but they can’t do it all – providers and other specialists have an important role to play too.”