Topic: Auto-enrolment

Employers say workplace pensions must evolve for changing financial realities facing younger workers

  • Almost half (45%) say immediate financial pressures are preventing younger workers from prioritising long-term saving
  • More than a third (37%) believe younger employees increasingly see a comfortable retirement as unrealistic, while 36% say they are less engaged with pensions than previous generations
  • More than a third (36%) say the pensions industry has not adapted quickly enough to changing workforce expectations
  • A third (33%) believe better financial education from a younger age could have the greatest impact on future retirement outcomes

Employers believe younger workers are facing significantly different retirement challenges to previous generations, as immediate financial pressures and changing career patterns make long-term saving harder, according to new research¹ from People’s Pension².

Almost half (45%) of SME employers say younger workers under 25 are unable to prioritise long-term saving because of immediate financial pressures. More than a third (37%) believe younger employees increasingly see a comfortable retirement as unrealistic, while 36% say they are less engaged with pensions than previous generations.

Employers also point to changes in the way younger people enter and move through the workforce. Almost a third (32%) say delayed career progression and lower earnings are reducing opportunities to build retirement savings early, while 27% believe more fragmented and less secure careers are making long-term pension saving harder. Just 4% say younger workers do not face significantly different retirement challenges.

The findings come as employers question whether the pensions industry is keeping pace with those changes. More than a third (36%) say the industry has not adapted quickly enough to changing workforce expectations, while 28% believe adapting workplace pensions to better suit fragmented or less traditional careers will help define the next major phase of the system.

Employers also see opportunities to improve future retirement outcomes. A third (33%) believe better financial education from a younger age could have the greatest impact, while 29% point to stronger government incentives to save. More than a quarter (26%) say making retirement options simpler to navigate could transform outcomes for future workplace pension savers.

These findings come during Talk Money Week (2-6 November), which focuses on the theme ‘It All Counts’, encouraging people to recognise the value of small, manageable steps towards improving their financial wellbeing. Against a backdrop of financial pressures making long-term saving difficult for younger workers, the findings highlight the importance of helping people understand and engage with their pensions from an early age, even when increasing contributions may not be affordable.

Stuart Reid, Distribution Director at People’s Partnership, said: “Younger people are entering the workforce in a very different financial environment to previous generations. Many are balancing immediate pressures with the need to save for the long term, while the traditional idea of a steady career and a predictable path towards retirement is becoming less relevant for some.

“We can’t expect younger workers to simply fit into a workplace pension system built around very different career paths. The system must evolve alongside them, making it easier for people to understand the value of saving and stay connected to their financial world as their jobs, earnings and circumstances change.

“Talk Money Week is a reminder that even small steps and conversations about money can make a difference. For younger workers who may not be in a position to save more, simply understanding what they and their employer are contributing, or taking the time to review their pension savings, can be a valuable starting point. Employers and providers have an important role to play in making these conversations easier and giving people the confidence and support to make informed decisions about their financial future.”

ENDS

People’s Pension comments on the Government’s Guided Retirement Policy Consultation

Speaking on today’s publication of the Guided Retirement Policy Consultation, Kirsty Ross, Product and Proposition Director for People’s Pension1, said:

“Delivering guided retirement successfully ought to strengthen trust in pensions by giving hardworking savers confidence that, when they retire, their workplace pension will provide a reliable and accessible income for life alongside the State Pension, without requiring them to navigate complex financial decisions at retirement that they are ill-prepared for.

“This significant reform, much like our decade-long New Choices, Big Decisions research, recognises that, while inertia has successfully supported pension saving through automatic enrolment, it’s unrealistic to expect millions of individuals to suddenly become retirement income experts when they reach retirement.

“Guided retirement should build on the success of automatic enrolment by carrying the benefits of good scheme design into decumulation. Clear pathways can help members turn pension savings into sustainable retirement incomes, while allowing those with different needs or preferences to make alternative choices that better suit their circumstances.

“Retirement defaults should form a scheme’s core retirement proposition, providing a trusted pathway to strong outcomes for members while maintaining straightforward routes for those who wish to do something different.

“At the same time, retirement default journeys should include clear consideration of members whose circumstances may warrant a more tailored approach, including those with particular health conditions, dependants, or wider financial needs.

“The consultation also provides an opportunity to support innovation in retirement income provision. Collective approaches, including Retirement Collective Pension Schemes (RCPS) schemes, have the potential to help deliver more sustainable retirement incomes by pooling risks and focusing on member outcomes throughout retirement.”

ENDS

What next for automatic enrolment in workplace pensions?

As the second Pensions Commission builds towards its landmark Final Report next spring, this crucial new research provides a detailed assessment of how the recently proposed reforms to the triple lock will affect a saver’s ability to reach pension adequacy benchmarks.

The independent study, authored by leading economist Carl Emmerson, partner at London Economics, argues that the State Pension and workplace saving need to be considered together when assessing future retirement adequacy, because decisions about the future level and uprating of the State Pension will affect how much people need to save privately. It also argues that the Pensions Commission should use its platform to highlight wide-ranging structural barriers to retirement adequacy that emerge from outside the pension system, including to labour and housing markets.

Whilst automatic enrolment stands as one of the UK’s most successful policy reforms, the research highlights that millions of savers may still be on track for inadequate retirement incomes. It finds that changes to the State Pension uprating regime could mean that many savers need to contribute more to their workplace pensions to achieve adequate retirement outcomes.

The report finds that middle earners face the greatest risk of under-saving. At the same time, policymakers must be mindful of the pressures that higher pension contributions could place on lower earners. To address this challenge, the report calls for higher default automatic enrolment contributions, an increase in the upper earnings threshold to around £65,000, and targeted protections for lower earners.

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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.”

Retirement support emerging as a key differentiator in workplace pensions, advisers say

  • Nearly two-thirds (64%) of advisers believe workplace pension providers still look too similar
  • Almost half (48%) say retirement support is becoming the key differentiator between providers
  • Almost six in 10 (58%) believe member outcomes and support now matter more than cost alone
  • More than a third (35%) expect retirement income solutions to become one of the biggest differentiators over the next five years
  • The findings suggest providers have an opportunity to stand out by supporting members throughout their savings journey and into retirement

Workplace pension providers can no longer rely on cost alone to stand out, as employers and advisers increasingly place greater value on retirement support when assessing providers, according to new research¹ from People’s Pension².

Nearly two thirds (64%) of independent financial advisers believe workplace pension providers still look too similar, suggesting there remains considerable scope for providers to differentiate themselves. Almost half (48%) believe retirement support is becoming the key differentiator between providers, while more than a third (35%) expect retirement income solutions to be among the biggest areas of differentiation over the next five years.

Cost remains an important consideration, with 59% agreeing it is still a defining factor when businesses engage with workplace pension providers. However, as the industry increasingly focuses on Value for Money, advisers appear to be taking a broader view of what constitutes value. Almost six in ten (58%) believe member outcomes and support matter just as much as cost, suggesting providers will increasingly be judged not just on charges but on the overall value they deliver throughout a member’s savings journey and into retirement.

Advisers also expect the retirement experience providers offer members to become an increasingly important differentiator. Alongside retirement income solutions (35%), almost a quarter identified digital engagement and AI-enabled support (24%), guided retirement pathways and guidance (23%) and greater personalisation (23%) as features that will increasingly set workplace pension providers apart.

The findings also highlight why advisers believe retirement support is becoming increasingly important. More than half (54%) say workplace pensions struggle to generate meaningful engagement because most employees disengage from their pension until later life, while 45% point to employees prioritising immediate financial needs over longer-term retirement planning.

When employees do begin thinking about retirement, advisers believe many would benefit from greater support. Nearly four in ten (39%) say most employees do not engage with retirement until it is very close, while almost a quarter (24%) believe employees underestimate how complex retirement decisions can be.

The findings suggest advisers increasingly expect workplace pension providers to demonstrate how they can support members throughout their savings journey and into retirement. As the market continues to evolve, retirement support is emerging as an increasingly important part of the overall workplace pension proposition.

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

“Supporting people at retirement is a very different challenge to helping them save. Automatic enrolment has brought millions of people into pension saving through a relatively simple framework, while retirement is much more individual. Members arrive with different pot sizes, circumstances, priorities and expectations of what retirement will look like.

“That diversity is one of the reasons retirement has been a much tougher challenge for the industry to crack. There isn’t a single journey that will work for everyone, particularly for providers serving millions of members from across the UK.

“Scale also gives providers an opportunity. As more members reach retirement, we’re building a much richer understanding of the choices people make, where they need support and how those needs differ across our membership. That experience can help us develop retirement propositions that better reflect how people actually want to use their pension savings.

“That’s why retirement support is becoming such an important differentiator. The providers that stand out will be those that can use what they learn from their members to give people the right support, at the right time, whatever their circumstances.”

People’s Pension responds to Pensions Commission consultation

Patrick Heath-Lay, CBE, Chief Executive Officer for People’s Pension1, said: “The Commission is right to recognise that the UK’s main pensions challenge is improving the adequacy and fairness of the pensions system in the context of an ageing society. This is fundamentally different to the challenge faced by the first Pensions Commission. The challenge now is to improve retirement outcomes while ensuring the long-term sustainability of the pensions system as demographic change places increasing pressure on public finances.

“Of these three priorities sustainability must be tackled first as it bridges pensions policy and public spending, creating the strongest foundation for reform. As the issue of pensions savings inadequacy gathers pace, the challenge will be to improve outcomes from the UK’s pensions system while managing the increasing fiscal pressures associated with both pensions and healthcare.

“Our view is that preserving a universal flat-rate State Pension that retains its value over the long term should remain a cornerstone of the UK’s pensions system, complemented by higher levels of private saving to better insulate future retirees from the fiscal pressures that are likely to emerge over the coming decades. Alongside this, the Commission has an opportunity to provide greater clarity on what pension adequacy looks like and to set a clear long-term direction for how it can be achieved. That should include strengthening automatic enrolment over time, bringing younger and self-employed workers into pensions saving earlier and ensuring savers are better supported to convert their pension pots into sustainable retirement income. We also believe that ordinary savers should benefit from the same protections and standards regardless of whether the pension scheme is workplace or retail.

“The second Pensions Commission has started an important conversation about how the UK responds to the issue of pensions savings inadequacy. We look forward to contributing to that debate as the Commission develops its final recommendations and helps shape a pensions system that delivers better, fairer and more sustainable outcomes for millions of hardworking people across the UK.”

Personalised video statements drive strong member engagement for People’s Pension, with nine in ten members remaining fully engaged[1]

People’s Pension2, the UK’s largest commercial master trust, has reached another milestone in its commitment to delivering more engaging, tailored experiences to its seven million members, through the development of its personalised video statements3.

The refreshed and rebranded video statements have now been rolled out to approximately 95% of active members4 and is already delivering high levels of interaction from its members, alongside consistently positive member feedback1.

The video statements are designed to complement annual regulatory statements by presenting key pension information in a more accessible and engaging format. Each video combines personalised audio and on-screen text, using data such as a member’s name, pension value, investment profile and future projections. Key features include a refreshed visual design, clear projection of potential pot size and retirement income, and simple insights such as Savings Reward5 information.

People’s Pension Chief Commercial Officer, David Meliveo, said:

“I’m incredibly excited to share the new-look personalised video statements, now fully aligned with our refreshed brand. With a fresh design and enhanced user experience, this marks a significant step forward in how we engage with members and reflects our ongoing focus on innovation, greater personalisation and ultimately, delivering better retirement outcomes.

“Evidence shows that regular, simple interactions help build members’ confidence in their finances, and feedback has been overwhelmingly positive. The initiative is already helping to deepen engagement, improve outcomes and strengthen our proposition for employers and advisers, with ongoing member insight continuing to shape and refine our approach.”

Nigel Rodgers, Chief Information Officer, for People’s Pension added:

“It’s an incredibly exciting time at People’s Pension, with huge potential for technology to transform how we communicate with our members – helping us deliver a more sophisticated, seamless and intuitive experience.

“Our personalised video statements have been designed and built with scalability, security and efficiency at their core, incorporating a range of innovative enhancements. Collectively, these innovations are redefining how members interact with and understand their retirement savings.”

People’s Pension plans to extend access further by launching personalised video statements within its member app6 later this summer, making it even easier for members to view and engage with their pension.

New annuity guidance service for People’s Pension members launched

The provider of the People’s Pension1, the UK’s largest commercial master trust2, has unveiled its new annuity guidance service, as part of its commitment to delivering better outcomes for its seven million members.

Working with market leading Retirement Line3, People’s Pension will now offer free-to-use4 enhanced support to members over 55 years old who want to consider the purchase of a guaranteed income for life through an annuity. This announcement is the latest development in the Scheme’s ongoing enhancements of the retirement options it is offering to its members.

A growing number of people are accumulating larger pension pots through automatic enrolment according to data from the Financial Conduct Authority5, and more are considering annuities as a way to secure a dependable income in later life.

Through its decade-long ‘New Choices, Big Decisions’ research6, People’s Pension has identified a need to better support members with the complex decisions involved in choosing their retirement options, including annuities.

By having access to Retirement Line’s services, People’s Pension members will benefit from a single, dedicated point of contact to help them navigate their retirement journey – from initial guidance through to finalising their annuity. This guidance service includes support to members in completing health questionnaires, helping ensure they are considered for the full range of enhanced or impaired rates offered by providers.

Members will be able to speak with specially trained staff by phone, who will support them in completing health questionnaires and help ensure they are considered for the full range of enhanced or impaired rates offered by providers. They will also have access to interactive online tools and tailored support for vulnerable customers.

Kirsty Ross, Proposition Director for People’s Partnership, provider of the People’s Pension, said:

“This announcement further demonstrates our commitment to supporting members as they approach retirement, by providing clarity at a time when their choices matter most. By offering our members access to Retirement Line, People’s Pension is ensuring they receive clear guidance and personalised support. This is about helping people make confident decisions in later life, with specialist expertise available at every stage of their retirement journey.”

David Meliveo, Chief Commercial Officer for People’s Pension, said:

“Employers want to know their workforce is supported, not just while they’re saving, but when they start making the big decisions that shape life after work. Helping people secure reliable income in retirement is a vital part of that duty of care.

“This new service gives employers confidence that their staff can access specialist, impartial guidance when it matters most. It’s a meaningful step toward improving long-term financial security and ensuring members feel fully supported as they plan for the years ahead.

“This is a great example of how a scheme our size and scale can pass on services to vast numbers of people without it costing them in the long term. While we have millions of members with all sorts of financial backgrounds and needs, this service will really help many of our members who cannot afford personal financial advice. This is a great example of what we stand for.”

Mark Ormston, Chief Compliance Officer at Retirement Line, added:

“We’re delighted to be working with People’s Pension. Especially during a period of competitive annuity rates and strong interest in turning pension savings into secure, guaranteed income. With healthy and growing competition across the annuity market, we look forward to supporting even more consumers in maximising their annuity income by comparing quotes from all the annuity providers on the open market.

“We offer both lifetime and fixed term annuity products on our whole of open market panel, with both products continuing to see increasing demand. In 2025, two thirds of our customers opted for a lifetime annuity, with 80% of these annuities being underwritten based on health and/or lifestyle factors. On average, these consumers received 12% higher annual income compared to the highest standard annuity offered on the open market.

“Whether savers are considering an annuity with all or part of their pension savings, I am confident that People’s Pension members will value the clarity, reassurance and support we provide as they look to make the most of their pension savings.”

People’s Partnership and Good Things Foundation launch two webinars to digitally empower members

People’s Partnership1, provider of the People’s Pension, has launched two new free webinars with leading digital inclusion charity, Good Things Foundation2, to help members feel more supported and empowered in the digital world.

Millions of people across the UK remain digitally excluded, including many in employment. Around 7.9 million adults3 lack basic digital skills, which can affect how they manage money, use essential services and engage with their workplace pension.

People’s Pension and Good Things Foundation are offering free, practical digital inclusion support that employers and members can use straight away. The short, on demand Build Your Digital Confidence4 webinars are designed to both help organisations understand digital exclusion and take simple, practical steps to support their workforce, as well as help members recognise the signs and challenges of digital exclusion and build confidence in signposting the right support.

The employer session covers:

  • How to spot and support employees who may be digitally excluded
  • Simple ways to help people feel safer and more confident online
  • Why digital skills matter for better engagement with workplace pensions

The member session helps members with:

  • Simple steps to feel safer online
  • How to spot digital exclusion
  • Ways to use digital tools with more confidence – including managing their pension digitally

Commenting on the new webinars, Nigel Rodgers, Chief Information Officer at People’s Partnership, said: 

“As a pension with purpose, our commitment is to help our seven million members build strong financial foundations for life, with financial wellbeing at the heart of everything we do. A key part of this is digital inclusion, ensuring no one is left behind as more services move online.

“Digital exclusion can have a real financial impact. We believe everyone deserves access to the knowledge, skills and confidence needed to plan for their future. Yet millions of people across the UK continue to face barriers to basic digital access, whether due to a lack of suitable devices, affordable data, or the skills to use online services safely and effectively.

“That’s why digital inclusion matters so deeply to us. It’s not only about improving how people engage with their pension, but about promoting fairness, confidence and independence. Technology should empower people, not exclude them. Through these free webinars, as well as our ongoing work with the Good Things Foundation, we aim to equip employers and support members to help overcome digital barriers and build greater digital confidence.”

James Muscat-Sharp, Director of Partnerships at Good Things Foundation, said: 

“Our work with People’s Partnership is focused on tackling the digital divide where it matters most: helping people gain the confidence and skills to manage their financial future. These webinars are a great example of providing practical, simple support to help members feel more empowered and included in the digital world.”  

Last year, People’s Partnership announced its first major charity collaboration with Good Things Foundation, bringing financial expertise into the social sector to reach people often excluded from both digital access and financial planning. The initiative is designed to help more people confidently manage their financial future online and includes three modules that People’s Partnership have co-developed for Good Things Foundation’s free online learning platform, Learn My Way5.

IFAs call for new approaches to engage younger savers as pension expectations evolve

  • Nearly three quarters (74%) of IFAs say providers need new ways to engage younger generations
  • Almost two thirds (63%) believe support should start earlier to help savers make better retirement decisions
  • Over half (51%) say providers should play a more active role in supporting members in retirement
  • 51% warn poor administration and service is a key driver of switching

Pension providers may need to adapt how they engage younger savers and support members across the full retirement journey, according to new research¹ from People’s Pension².

Nearly three quarters (74%) of independent financial advisers (IFAs) say defined contribution (DC) providers need new ways to engage younger generations, reflecting growing concern that traditional approaches  may not fully connect with those at the start of their savings journey.

That challenge extends beyond initial engagement. Almost two thirds (63%) of advisers believe providers should do more to help savers make informed decisions earlier, highlighting the importance of support well before retirement comes into view.

Expectations also continue into later life. Over half (51%) of IFAs say providers should play a more active role in helping members manage their money once they retire, underlining the need for greater support as more people move from saving into drawing an income.

When asked what DC pensions should offer, advisers highlight the need for practical, accessible tools that support better decision-making. Digital member platforms (41%), improved data and reporting (39%), and integrated retirement and decumulation tools (38%) are among the most cited priorities, alongside more personalised communications (34%).

The findings come as People’s Pension calls on the industry to move beyond traditional communication approaches and adopt new ways of engaging savers earlier in their journey. This includes reaching audiences in more relevant, everyday contexts and making pensions easier to understand and act on.

Stuart Reid, Distribution Director at People’s Partnership ,said:

“What this research shows is that expectations are continuing to evolve. Advisers want to see support start earlier in the savings journey and continue through retirement, alongside practical tools and reliable service that help members make informed decisions at each stage.

“This is very much in line with what we are seeing in our recent webinar series, Pension Talk. Whilst in the past younger employees were often less likely to participate in pension discussions, as they felt the core questions were more relevant to colleagues nearing retirement, that is now changing.

“We are seeing much stronger interaction and participation from younger employees, along with a growing understanding of the importance of getting started early. That will have a meaningful impact on their long-term outcomes, and it is encouraging to see.”