Research and analysis

Final report: Engaging with Pensions at timely moments

Updated 6 February 2024

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First published February 2024.

ISBN 978-1-78659-591-1

Views expressed in this report are not necessarily those of the Department for Work and Pensions or any other government department.

Policy background and research rationale

Since the introduction of Automatic Enrolment (AE) 2012, participation in private sector workplace pensions increased from 5.9m people in 2012 to 14.4m people in 2021 (DWP Statistics, 2022). While AE has been successful in increasing the numbers of people saving for retirement, there has not been a similar increase in the amount of people engaging with their pensions (ONS, 2020).

This makes it harder for individuals to plan appropriately for retirement. Despite AE relying on inertia, there are several areas of the UK pensions system where people may need to make choices, including whether to save above AE minimum levels, whether to combine their pension pots, and how to access their pensions when they come to retire.

The purpose of this research was to understand how to encourage people to engage with their pension, make decisions where necessary, and plan appropriately for retirement.

The research achieves this by exploring people’s attitudes and behaviour with regards to pensions, saving, and retirement planning; identifying whether specific life events might be useful prompts to help people engage with their pensions; and looking at how the government and the pensions industry could best support people at these times.

The research will inform a range of further policy work, including:

• The implementation strategy for the 2017 AE Review Measures

• Future AE policy developments

• The next steps following the Decumulation Call for Evidence Response and Consultation focussing on the support and guidance for those approaching retirement accessing their pensions

Summary of existing research on pensions engagement

There is a variety of published literature around pensions engagement, including at life events. Life events and pensions engagement:

1. Starting a new job was highlighted in Nest Insight’s qualitative and quantitative research as being a key life event for people thinking about their pension. Buying a house was also mentioned in the qualitative research as being a prompt for savers to think about their long-term finances. However, none of the ten savers in the qualitative research attached importance to milestone birthdays. (Nest Insight, 2017)  

2. Respondents said the consumer journey was highly personalised with decisions and touchpoints shaped largely by life events, such as changing jobs or buying a house. (The Pensions Regulator, 2022) 

3. Workplace and financial milestones were more likely to be a prompt for savers considering contribution levels than personal milestones. (Nest Insight, 2020)  

4. Gaining new employment, purchasing a house and entering retirement may be important in influencing retirement planning. (Altschwager T. and Evans J., 2019) 

5. A rapid evidence assessment by the Money and Pensions Service identified that life events, such as the start of a new job, a pay rise or moving house, can be used as engagement prompts. (Money and Pensions Service, 2021) 

Further research around pensions engagement.

1. Attitudes to pensions were characterised by detachment, fear and complacency, which acted as a barrier to engagement. Motivation to proactively engage with pensions information was low. However, people may be better motivated to engage with pensions for various reasons, including if they were better able to interpret pensions information or felt more able to influence their pension outcomes. (Department for Work and Pensions, 2023)  

2. Survey data shows that 47% of respondents had reviewed their DC pension pot in the last year, and 29% have increased contributions. (Financial Conduct Authority, 2020) 

3. Employer pension engagement was often influenced by the amount of knowledge or resource they had. Engaged employers, who tended to be larger employers or from professional sectors, typically provided more wide-ranging support to ensure employees are ‘looked after’. (Department for Work and Pensions, 2022) 

4. A rapid evidence review suggests that ‘fresh starts’ (e.g. a new calendar year) were a good time to increase pensions engagement. (The Money and Pensions Service, 2021). 

5. Young people were likely to be unsure of how much they will earn in the future and therefore not able to plan as much for their retirement. (Pensions Policy Institute, 2016).  

6. The gender pensions gap in private pensions stands at 35%. However, this gap has reduced since the introduction of AE in 2012. (Department for Work and Pensions, 2023).

Research aims & questions Research aims:

1. To gain a clearer understanding of people’s attitudes and behaviour around pensions, saving and retirement planning, within the context of the life course.

2. To explore how government and industry might best support people throughout their life course and/or when encountering specific life events (e.g. birthdays) with appropriate pension information and guidance.

Research questions:

1. How often do individuals check their pension pot? What prompts individuals to check it and take any action in relation to their pension?

2. What has worked, if anything, to engage individuals, and for them to take action?

3. Do individuals view their birthday as a good time to think about their pensions? Are there any other life events at which people want to / do engage with their pension?

4. How do individuals want to be guided with their pensions?

5. Who do people want to receive information from?

6. How do people prefer to receive information and how often?

7. How do attitudes towards pension engagement differ by age?

Methodology

• Fieldwork: Department for Work and Pensions (DWP) researchers conducted 10 online focus groups – with at least 4 working age individuals who were saving into a private pension(s) in each group (49 individuals took part in total).

  • Focus groups lasted around 1.5 hours and took place in January and February 2023.

  • Focus groups were the chosen methodology in order to obtain in-depth data whilst also promoting interaction regarding the topics explored.

• Sample: Each focus group was organised by age group: 18 to 24, 25 to 34, 35 to 44, 45 to 54 and 55 to 65. Focus groups were organised by age group to encourage discussion between people at similar life stages for a more meaningful interaction. Using these age groups will support other DWP analysis and aligns to age groupings used in other research.

  • Participants’ gender, financial literacy/confidence and income were monitored at the recruitment stage to ensure people from a broad range of circumstances were interviewed.

• Recruitment method: Criteria Fieldwork and Ipsos recruited the research participants from their pre-existing panel as there was no readily available DWP sample. Using their panel also ensured we efficiently sampled a wide pool of citizens meeting our sampling criteria.

  • Participants were pre-screened with a questionnaire to determine their demographic information and current pensions arrangements.

Reporting

• The research project mapped the range and diversity of participant viewpoints, regardless of whether a majority or minority held that view. As this is a qualitative research project, it does not intend to be representative of the entire population. Instead, it provides in-depth understanding of participants’ experiences, challenges and barriers.

• This research explored participants’ views and experiences of their private pension arrangements, so all findings included in this report are about private pensions, unless otherwise specified.

• In this report, the data points are not described in quantitative terms, but we do indicate which views were commonly held.

• Key differences between demographic groups identified by the analysis are included in this report.

• Quotes in this report are from notes taken in the first-person and are, where possible, verbatim. The notes were reviewed and corrected if applicable based on Dictaphone recordings.

• More information about the research methodology can be found in the accompanying Technical Report.

Key findings summary

Pension arrangements, responsibility, and control over pensions

• Understanding of and engagement with pensions varied across participants and between different age groups.

• Many participants felt they had no control over their pensions, either due to lack of knowledge or due to external factors, e.g. government policy or financial markets. Control over pensions was discussed in terms of access to, and management and understanding of, their pensions, along with the impact of external factors on pension pots.

• Pension education could improve this with more targeted information and support from providers and employers. Simplified pensions information from the government and pension education in schools were also considered important by participants.

• Personal responsibility for pension management was almost always expressed in relation to updating personal details, paying or increasing their contributions if possible, and keeping track of multiple pension pots. Pension providers were expected to give up-to-date information and communications about how the money was handled. Providing annual statements, updates, and reminders was perceived to be an important part of this. Providers were deemed responsible for looking after funds and behaving sensibly.

Prompts for pension actions and reasons for inaction

• Various life events were identified by participants as prompts for pension-related actions:

  • Events centred around experiences such as milestone birthdays, getting older, illness, and suffering a bereavement. It is noteworthy that birthdays were not generally deemed a good time for pension engagement.

  • Other events due to changes in their family arrangements, including getting married or divorced, or having children.

  • Lastly, events that signified changes to finances, e.g. employment changes (such as starting a new job or a change in working hours), buying a house, or paying off a mortgage. Employment-related changes led to a variety of pension actions for many participants.

• Action was also prompted by receiving paid for advice or free guidance from a variety of sources, as well as hearing the positive and negative experiences of others who had retired.

• Nonetheless, a number of participants did not perceive life events as a prompt for pension-related action, due to their young age, seeing pensions as something in the distant future, or dealing with current financial pressures.

• Both men and women cited age as a reason for not acting on their pension. Female participants suggested that lack of confidence, lack of information and dealing with more pressing financial issues also prevented them from engaging.

Pension communications preferences

The research found that there is not a single approach that would work for all with regards to communications preferences.

• Mixed views were expressed about letters and emails as a form of pension communication.

• Some participants preferred pensions communications over the phone, whereas other participants preferred text messages.

• Online communications were popular with some participants, and others felt access to their pension portal via an app or website was sufficient.

• Some felt that there was less need for communications given they had easily accessible pension portals through smartphone apps. Pension portal apps gave participants access to a wide variety of pensions information and management tools.

• Most participants preferred receiving pension information once a year. Younger participants were more positive about receiving reminders.

• It was also felt that having all their pension information in one place would be useful, especially for participants with multiple pension pots. This suggests that pensions communications could be tailored to individual needs to ensure engagement with pensions.

Future engagement with pensions

• Many, especially those in the 18 to 24 age group, anticipated having more engagement with their pensions in the future, with a small number of participants expecting to have the same level of engagement.

• Younger participants expected to pay more into their pensions in the future, whereas older participants wanted to seek financial advice.

• Highest earning participants were more likely to report paying more into their pensions pots as an expected future engagement action.

• Female participants outlined more types of future engagement than male participants. This included conducting their own research and seeking financial advice.

• For younger participants, changes to employment would be a reason for future engagement. However, older participants cited getting closer to retirement age as a prompt.

Pension arrangements, responsibility and control over pensions

Most participants had a positive outlook about their retirement. However, a small number had negative or neutral attitudes Participants were generally positive about saving for retirement, with just over half expressing favourable sentiments, some participants feeling negatively and even fewer stating feelings of neutrality.

Despite these broad trends, there were clear differences across age groups. Those in the youngest age group (18 to 24) were overwhelmingly positive in their outlook, while negative feelings were most frequently expressed by those in the 35 to 44 age band. Wanting to have security for the future was a key theme for participants who had positive feelings towards retirement.

“Having that back up […] that’s always there, you just keep putting money in and you don’t have to think about it until you take it out. It’s a good safety net.” (Male, 18-24)

Some participants were often worried that they would not be able to save enough money for retirement and believed that the uncertainty and unknowability of the future, combined with the current economic hardship caused by the cost-of-living crisis, made saving for retirement difficult.

Alongside concerns about being able to save enough money to have a comfortable retirement, negative feelings towards saving for the future were often linked to perceptions of fairness and the role that the government should play to ensure that retirement funds were protected.

“I don’t think I’m quite confident in the sense that […] Like everyone mentioned the amount that goes out with the cost of living now. I don’t know what the future is like in that sense. When it comes to other sources of income it’s hard and challenging to accomplish that sometimes. I’m a bit hazy on that.” (Female, 35-44)

Many participants had one or more pensions set up by their employer.

Some found multiple pots hard to keep track of and, as a result, merged pots.

Most participants had at least one pension that was set up by their employer. Younger participants were more likely to have been automatically enrolled into these pensions. Older participants may be more likely to have had pension pots prior to the introduction of AE in 2012.

The number of pension pots that participants had varied considerably by age, with older participants more likely to have multiple pension pots. Even in instances where participants could identify how many pension pots they had, they often stated that a lack of communication from their pension provider made it difficult to know exactly how much each pot was worth, how they could access it and how it was being managed.

“Thinking back I cannot remember from the top of my head who all of my pensions are with. I think I might have even actually had another one when I first started work in my first part-time job, but I can’t remember off the top of my head who it was with or where it is.” (Female, 25-34)

Some participants had consolidated their pension pots, but none of these were in the 18 to 24 age group. The administrative tasks involved with keeping track of multiple pension pots was a key factor in participants deciding to consolidate the number of pensions that they had.

“That was one of the reasons I combined mine because I was worried about when I get older, it was only quite a small pension, a small amount in the pot, and I was just worried about forgetting about it and not remembering who the company are.” (Male, 25-34)

Higher earners were more likely to express feelings of control over their pensions in comparison to participants in lower income groups

Some participants demonstrated control over their pension through the actions that they had taken. Decisions such as choosing to freeze and unfreeze regular pension payments, contributing more, maximising contributions from their employer through employer matching schemes, switching their risk level, speaking to a financial advisor, and consolidating their pots were ways in which participants were able to exert power and feel in control.

Participants appreciated having a choice over actions taken in relation to their pensions, which helped with feelings of control.

“We can select, we have a choice of how much we want to put in, so the longer you’ve been at the company, you can up the amount you’re putting in as a percentage of your salary and the company then add more as well because of that. It works quite well and I would say that does make me feel like I’ve got control over it in that respect.” (Male, 25-34)

Higher earners expressed feelings of control more frequently than those that earned less. Given that control was often linked to a participant’s ability to contribute more to their pension, this trend is unsurprising as it is likely that those earning more would be better able to increase their payments.

“I feel quite in control of my pension because I know I can, we’ve got a portal where we can adjust how much we pay in so I know if like I was in, if I needed more money I could just cancel the pension contributions from next month, have a bit more money in the payslip.” (Male, 18-24)

Many participants expressed feeling a lack of control over pensions due to limited understanding and/or external factors

For younger participants, a lack of control was associated with a lack of knowledge and limited understanding about their pensions. In contrast, participants in the older 2 age groups (45 to 54 and 55 to 65) tended to report a lack of control due to external factors, such as the actions of the government (such as policy changes), the volatility of the financial markets/economy, and perceived problems with the way that pensions operate.

Therefore, unlike the younger age groups, very few participants in this category felt that they were personally responsible for feeling like they lacked control over their pensions.

“The other pensions I have are with these organisations […] I found are from previous employers which I can’t pay extra into until I decide when I’m going to retire […] so I’m actually stuck in the sense I can pay as much as I can in my current employers’ pensions to get a higher return.” (Female, 55-65)

Participants who felt ambivalent tended to view control on a continuum. Rather than suggesting that they felt either in control or a lack of control, they tended to suggest that their feelings shifted depending on what aspect of their pensions they were talking about. For example, most reported feeling in control over elements such as the amount they could contribute to their pension or how frequently they could check their pension pot, but highlighted how financial markets, regulation and government actions such as policy changes actively limited the possibility for total control.

“Control over is probably a stretch. Let’s face it the true control is the market. Mine goes up and goes down. Hopefully over the longer term it finishes in a great place. Control where you’ve got multiple pots in different places is difficult.” (Male, 45-54)

Many participants had little understanding of their retirement fund, and felt not having access to relevant information prevented their understanding further

Many participants felt that they had no or very little understanding of their retirement fund. These participants were unsure about the way in which their money accumulated and how or when they would be able to access the pots. Those who felt that they had no understanding of their retirement fund also tended to have very limited or no understanding of other aspects of their pensions, such as not knowing how their retirement fund would be distributed during retirement or how or when they would be able to access the pots.

“I don’t really know how they get to that amount they take out when I’m paid. I don’t know if it’s based on how much I earn. All I know is that it’s taken out and I don’t know how to access it to see how much has accumulated over the years.” (Female, 35-44)

Only a small number of participants felt that they had a good understanding of their retirement fund. Across participants with varying degrees of pension knowledge, being able to check their pension pot online and view projected figures seemed to play a key role in aiding their understanding.

Those with a basic understanding knew how much they were paying each month but did not necessarily understand what this equated to as a retirement fund. These participants often mentioned wanting to understand more but felt that they did not have access to the relevant information.

“My pension provider shows a drawdown on the app, so that shows how much you’re intending to get and what you’ll get really. I look at that quite often.” (Male, 25- 34)

Participants desired more information and support from providers and employers to aid their understanding of pensions

Some participants reported that their pension provider should take some responsibility for pension education. While some were receiving information about what they could do with their pensions and were able to access pensions learning resources, others felt that providers needed to give more targeted information that helped to better their understanding of the kinds of actions that they could take.

“I think if either the employer or the pension provider sent out regular updates or reminders about what you can do and what control you have over your pension and providing more education on it, I think that would help as well.” (Female, 25-34)

Where participants spoke about specific interventions undertaken by their employer, they felt that these were important in aiding understanding and helping them to better manage their pensions. A small number spoke favourably about workplace pensions education events provided by their employer. This, however, was not the norm, and most believed that their employers could and should be doing more to educate employees.

One participant described how their employer arranged meetings with a company that specialised in financial and retirement wellbeing. The interactions had led them to contribute more to their pension.

“Once a quarter they did have a pension advisor make themselves available. My company did really promote that, they were very good. Since working from home and things changed that has completely stopped so I am sort of in a different position where my employer was very encouraging.” (Female, 35-44)

Simplified pensions information from the government and pension education in schools were also considered to be important

The government was mentioned most frequently when participants were expressing views about who should be responsible for educating the population about their pensions. Participants felt that the government should have an overarching role to inform and raise awareness about the options that are available to them.

According to participants, there was a lot of complex information that could be clarified or simplified by the government to make it less ‘overwhelming’. It was believed that this would increase knowledge and, as a result, encourage people to engage with their pension more.

“I don’t know much about pensions and was making wrong decisions and found it overwhelming, so they need to educate and simplify it so people can understand it straight away without much research.” (Male, 25-34)

Some participants believed that schools should have some responsibility for pension education. They felt that not enough was being done at a young age to educate people about the practicalities of making responsible financial decisions. Participants suggested that financial education should be better integrated into the curriculum before students leave school so that young people are properly equipped before they enter the workplace.

This suggests that participants felt that their pensions understanding was informed by their own research and that they would have benefited from being taught about pensions at a younger age.

“I do think we blame a lot on schools but there is some benefit on learning to not put things on credit cards, plan for the future […] I think the earlier you start the better, whether that be through school or elsewhere […] school seems a good way of engraining things in.” (Male, 55-65)

“Why can’t there be something in schools, last years in school sit down and say you’re leaving education you’re going to a workplace these things are coming up […] more information earlier.” (Female, 35-44)

According to participants, employers were responsible for setting up and contributing to pensions, while protecting pensions was the government’s responsibility

Some participants reported that their employer should take some responsibility for pensions. The role of employers was primarily expressed in terms of enrolling participants onto the company scheme, making pension contributions and keeping them informed via reminders.

“I rely on my employer to pay in, roughly 10% that I pay in. I don’t contribute more. […] I see my employer as responsible for this.” (Female, 35-44)

Most participants felt that the primary responsibility for managing their pension passed from employer to pension provider once they had been enrolled. After this had taken place, employers were seen as responsible for making contributions, but not necessarily managing their pension on a day-to-day basis. Where participants reported that the government should have some responsibility, this was specifically around pension policy, as well as responsibility for the economy more broadly.

They felt that the government needed to take proactive steps to ensure that pension funds would be protected in the future.

“I think there’s got to be more done to ringfence the pension funds. I think there’s been too many allowances for it to be used or not paid into. […] I think there needs to be more regulation to protect the money that’s been paid in and it can’t be used as a trust fund for a business that is going through growth or tough times.” (Male, 45- 54)

Participants felt it was their responsibility to manage admin related to their pensions.

However, it was for providers to manage the funds Participants expected pension providers to provide up-to-date information and communications about where their money was and what was being done with it.

Providing annual statements, updates and reminders was seen to be an important part of this. Embedded within these sentiments was the belief that providers were responsible for looking after funds and behaving sensibly.

“I’d hope that the private pension I’m with, they’re not going to do anything reckless investments wise and the sum in the pot is going to keep increasing rather than decreasing over the years.” (Male, 25-34)

When discussing pension management actions, participants most frequently described updating their personal details, contributing to their pensions, and keeping up to date with payments. Participants almost always viewed these as their personal responsibility. Participants felt it was particularly important to keep track of their past pension pots when there were changes to their employment, whether this was starting a new job or changing their working hours.

There were a small number of participants who felt that they were wholly or primarily responsible for managing their pension. Those who reported feeling this way almost seemed resigned to the fact that there was very little that organisations or other people could do. In these cases, responsibility for managing their pension was seen as a necessity rather than a choice: if they did not take responsibility, no-one else would.

“I’d probably say it’s my own responsibility because I feel like when you go from one employer to another it’s like it’s on me to let my new, like merge them or to do something, like my money’s just sat there in my old pension, my old employer and that’s on me to let my new pension or whoever or whatever it is know so they can somehow merge it.” (Female, 18-24)

“Unfortunately I think it primarily is my responsibility, I can’t see how it would be my employer’s or the government’s.” (Female, 55-65)

Slide 23: Prompts for pension actions & reasons for inaction

Slide 24: Summary of prompts for pension-related action

• Pension Engagement

• Life Events

• Milestone birthdays

• Getting older

• Approaching retirement

• Illness

• Bereavement

• Changes in family arrangements

• Changes in finances

• Specific Information

• Employers

• Pension providers

• Free guidance

• Paid for advice

• Own research

• Family/friends/colleagues

• Experiences of others

• Hearing experiences/advice from family or friends

• Seeing others struggle in retirement

• Seeing others retiring

• Other reasons

• Curiosity

• Participating in the focus group

• Wanting to keep track of pension pots

• Personal money management techniques

Participants reported taking various pension-related actions

Checking their pension pots was the most common Nearly half of the participants and twice the number of males than females reported checking their pension pot.

Reasons for checking pension pots were to see the accumulated amount, to increase contributions, to be reassured their contributions are matched by their employer, to check investment performance, to inform discussions with their partners, and to change or add beneficiaries. Most participants checked their pension pot online using a portal or app, whilst a couple reported reading their yearly statement.

The regularity with which individuals checked their pot varied widely, with some checking regularly, some setting reminders to do so on a monthly, 3 or 6-monthly basis, and others taking a more ad hoc approach.

“I’m on high risks funds at the moment plodding along at a reasonable rate. I have a quick check occasionally, I go on the portal and check there hasn’t been any dramatic movement up or down. (Male, 45-54)

• A small number of participants aged 25 and over, consolidated pension pots as they changed jobs. Participants were concerned about forgetting about their old pension pots. The effort, paperwork, and admin involved in managing multiple pots were key motivators to merge them.

• Some participants mentioned paying more into their pension. Decisions to increase contributions were driven by tax efficiencies or wage increases and increased awareness of money needed in retirement from attending pension information sessions.

• A small number of participants also reported auto-enrolling into a new pension scheme, opening a pension account (due to self-employment or set up before AE was introduced), drawing a lump sum, moving investments to higher- or lower-risk funds, moving pension provider, leaving a pension scheme when they moved jobs, updating their pension account details, using online tools to project income in retirement and making other investments, e.g. in property, to supplement retirement income.

“My concern was that I could maybe not realise I had one [a pension pot]. I have moved around [work] quite a lot. I was concerned that there may be funds out there that I was not fully aware of. I wanted to make sure I had everything possible, easy to access or review at least.” (Male, 35-44)

“I’m sure I get an annual statement or letter comes in the post and log on and I have done that once or twice but it feels like one of those things where you don’t really have anything to engage in.” (Female, 35-44)

Participants took action to increase knowledge of pensions by proactively seeking free guidance or paid for advice

Participants across different age groups, but primarily aged 35 or over, talked about proactively looking for information about their pension or pensions more generally online, e.g. on government, pension providers’ and other websites with authority, to better understand how pensions work, the tax benefits of contributing into a pension scheme, and how much money they would need when retiring.

“I didn’t quite understand pensions, so I read around to choose what level and risk and saw higher risk has higher return. Obviously, it is more risk, but I thought I might as well when I’m young and see if I can get returns on it.” (Male, 18-24)

• A small number of participants aged 35 and over mentioned seeking free guidance about their pension. Pension providers and Pension Wise were approached by participants as well as DWP and the Pension Advisory Service, whilst others perceived the Money Saving Expert’s website as a trustworthy source of guidance.

• One participant described some of the issues with receiving free guidance from various sources, such as guidance not including specific recommendations about investments or pension advisors.

“I did something a few years ago, I can’t remember what it was called […] Pension Wise or somebody […] did a review of my pensions and told me to leave it exactly as it was, didn’t recommend anything. I didn’t know whether to move my bigger one into my current one you see […] Don’t put all your eggs in 1 basket, they are pretty similar, leave the old one as is and carry on with your current one.” (Female, 45-54)

• A small number of participants aged 35 and over had also spoken to a financial advisor about their pensions.

• Participants who engaged with a financial advisor discussed their pensions arrangements amongst other investments. No participant had approached them to exclusively review or receive advice on their pensions.

• Despite using the services of financial advisors, one participant shared their wariness about the advice received and the financial advisor’s motivations.

“I got a financial advisor to go through my pensions about 2 years ago, but I just felt it wasn’t right […] Felt they were there to sell their service. They said move your pension to our company and we’ll manage it […] left my pensions in the pots as they were.” (Male, 35-44)

Birthdays were not generally perceived as a good time for pension engagement Only a handful of participants felt that their birthday prompted them to act on their pension.

One commented that birthdays coincide with retirement day, so they seem like a good time to engage. For a different participant it was the fact that birthdays meant they are closer to retirement which was the trigger.

Positive views:

• A small number of participants felt that birthdays were a good time to engage with their pensions.

• Those who felt positively about thinking or engaging with their pensions around their birthdays suggested that being reminded before the actual date would be preferable.

“I always think you do start thinking about that as you get a year older and closer to that. I would say that is a trigger for me. And also the beginning of the year as well [is a trigger]. My birthday is in February, so I start to think I’ve got to take some action.” (Female, 45-54)

“It’s not the first thing on my mind, but it’s still there. I don’t wake up on my birthday and think ‘I’ll check my pension today’ [laughs]. Maybe when I’m older and count down the years from when I can take it out, but it’s not my first thought.” (Female, 18-24)

Negative views:

• Quite a few participants under the age of 44 expressed negative feelings towards engaging with or thinking about their pension around their birthday.

• Some felt that on their birthday the focus is on celebrating and having a good time rather than thinking about their retirement.

• One participant explained that financial planning or planning for retirement was a matter of personal choice and was not necessarily linked to birthdays but to what stage in life you are at.

“I think we’re all of a similar age but we’re all at different points. I don’t think birthdays necessarily mean you’re at a stage of life. I don’t know. For me, I think I would, it would depend on what age people started engaging with their pensions because I think it’s a personal choice as to how you feel with your finances and what your plans are. I think anything under 40 feels too early to be pushing it.” (Male, 25-34)

Life events centred around experiences such as milestone birthdays were identified as key prompts for pension-related action Milestone birthdays

• Those aged between 35 and 65 felt that it was milestone birthdays (i.e. those marking the start of a new decade) that made them act on their pension. None of those aged between 18 and 34 shared that view, most likely due to their young age.

• Turning 50 and 60 were reported as key times when people focused on their pension. This was driven by making pension-related decisions such as taking a lump sum or the urge to financially plan for their future.

“The ones with the zeros, 40th then 50th, the ones with the zeros, have big impacts don’t they?” (Female, 35-44) “Yes for me, it was late forties as I really thought about being 50. That’s when my husband and I started to think about it and discuss plans. We both know we don’t want to work to 67 in our current jobs. 50 was a significant milestone for me.” (Female, 45-54)

• Getting older

• Although birthdays were not a big trigger for pension-related action, some participants (most from the 35-44 age group) mentioned being prompted to engage with pensions by the fact they were getting older.

• Some described how getting older made them think about life, their future and their financial security, including their pension arrangements, more holistically. Participants assessed how financially protected they are, how to handle a potential job loss in their 50s, whether to take a lump sum to pay off their mortgage, years left to pay off their mortgage, and how long they would be well enough to work.

“I always think you do start thinking about that as you get a year older and closer to that. I would say that is a trigger for me.” (Female, 45-54)

“[…] initially driven by getting a bit older, buying houses, looking at life insurance, making sure I was protected financially as I could be, became more important as years went on.” (Male, 45-54)

Approaching retirement age, the onset of illness, and bereavement were perceived as key prompts for pension-related action

• A small number of individuals, primarily aged 45 and over, specifically mentioned approaching retirement as a key prompt to act on their pensions.

• One participant described how approaching retirement age prompted them to have a pension review, which in turn made them think about their pension pots and savings.

• Another participant suggested that for those approaching retirement, it would be beneficial to have a review to better understand what impact any changes to their current pension arrangements may have in terms of how much they will receive in the future.

“You start to think you’re on the other side, heading towards retirement […] but 50 suddenly you become your parents, you remember them being 50 and they seemed so old and then you are 50.” (Female, 45-54)

• A handful of participants described how their experiences of ill-health prompted them to increase their contributions as they realised they had to rely on their pensions more or sooner than expected, and nominate beneficiaries when they found themselves in life-threating situations.

• Others described how the sudden onset of their or a family member’s illness urged them to act on their pension, including planning for retirement or going on partial retirement to supplement their income.

“I was really poorly when pregnant and having my son, it was life threatening, so I kind of looked at what my options were for leaving inheritance so was nominating my pensions but not for anything else, just kind of looking into it in case I die which is kind of quite morbid.” (Female, 25-34)

“[…] you don’t plan not to work full time and suddenly be unwell […] I’m in a lucky position where I earn enough to not be on Universal Credit or Employment Support Allowance, things like that but if you are on those you can’t pay into a private pension […] you are gonna struggle with the cost of living now and it’s going to carry on into your old age […] I don’t know how long I’ll be here for. So why not take bits of pension I’ve got now to supplement my income? You don’t know if you live till 99 or you’re going to go tomorrow.” (Female, 55-65)

• A couple of participants explained how the death of family members, and specifically their parents, prompted action with their pensions, such as drawing down, as there was no one else they felt they could rely on financially or otherwise. • For another participant, however, losing their mother at the age of 55 made them consider living more in the ‘now’ and not saving for their pension.

Changes to family arrangements, such as getting married or having children, were other key life events that prompted pension-related action

• Getting married or re-married prompted a small number of participants to update their beneficiaries on their pension accounts.

• A handful of participants reported divorce or relationship breakdown as a trigger to either start saving into a pension or make changes to their pension contribution amounts.

“And I also was due to get married the first weekend of Covid which got postponed. But with all of that was, well, what happens to the pensions should anything happen to me? Have we got all the right policies in place to make sure it’s passed to the right people? I found out that actually it wasn’t the optimum scenario, hence why I changed everything at that point and consolidated them into one.” (Female, 45-54)

A small number of participants mentioned having children as a prompt to take a variety of pension-related actions:

• The cost of raising children made some participants plan better financially, including their pensions.

• Others contributed to a pension because they perceived it as financial security for their children should anything happen to them.

• Becoming a grandparent encouraged one participant to consider early retirement to spend more time with their children and grandchildren.

“When we had kids we started to think about the future a little bit more, what the situation will be like once they are a lot older and if we’d be able to invest at that age as well. It’s the kids that really changed the way we thought about pensions.” (Male, 25-34)

• A couple of participants in the 45-54 age group raised the point that, as their children had left or were soon to leave home, they would start focusing on their pension more as part of their financial planning for the future, e.g. whether to invest money from downsizing their property to their pension or elsewhere.

“Mine’s the 55 [age] thing, whether I take the 25% lump sum to pay mortgage off. One child left home, I’ve still got 2 at home. When they are gone we’ll downsize [property] which will release the money back to my pension or into the bank. This is going on in my head at the moment… the 55 thing ‘cause I’m 53 next month.” (Female, 45-54)

Action was prompted by life events that meant changes to finances, such as starting a new job, buying a house, or paying off a mortgage

Many participants (primarily aged 45 and over but some younger participants too) reported changes to their employment status as a key trigger for acting on their pensions.

A variety of employment-related changes and pension actions linked to this were mentioned, such as:

• starting a new job and needing a better understanding of the new pension scheme contributions and making decisions about which scheme to continue contributing to

• moving jobs and deciding how to manage pension pots from previous employment

• becoming self-employed and having to put own pension arrangements in place

• earning more or less in a new job and increasing or decreasing pension contributions accordingly

• being made redundant and looking for a secure job with a pension scheme

• returning to work part-time after maternity leave and joining a new pension scheme

Additionally, one participant wondered whether working hour changes could trigger a review of pension arrangements.

“The times I tended to look at them is when I’ve moved jobs, sometimes when you apply you’re looking to see if they offer a pension as well as part of the package. Generally when there is a change of job.” (Female, 45-54)

“I wonder if a trigger to review is changing to working hours, hours less or more, maternity leave, contributions would be a natural point to review.” (Female, 35-44)

Big financial commitments like having a mortgage were mentioned by a small number of participants as a key consideration for acting on their pension. One described feeling nervous about taking the 25% pension lump sum out to pay off their mortgage, while another described how paying off their mortgage meant they could invest more in their pension.

“I think for me it was I had to make a decision as to whether to take the 25% lump sum as well. I still have a mortgage I could pay off with that that lump sum. That’s the main reason I started to look at mine. I feel a bit nervous taking that 25% lump sum out, you feel like you are taking a big amount out of your pension.” (Female, 45-54)

A small number of participants mentioned buying a house being a prompt for either thinking about their pension or taking action, e.g. considering whether to merge pension pots and using the pension lump sum to pay off the mortgage. Some participants thought of their pensions and buying a property in the context of ageing and financial planning for their future.

Nonetheless, some participants did not identify life events as a prompt for pension-related action, due to their young age or focusing on other priorities

Quite a few participants pointed out that life events had not triggered them to take any pension-related actions. Perhaps not surprisingly most belonged in the younger age groups (under 34s) and their feelings could be explained by not having experienced many of the life events their older counterparts had, or by the sentiment that retirement is quite far away.

“I’d say with some confidence that there’s been no motivation around significant life events.” (Male, 18-24)

Some participants from the older age groups who had been through significant life events expressed similar views. These were attributed to their focus on dealing with current financial challenges rather than their pension. Another participant explained that life events did not prompt them to act on their pension due to retirement seeming too far away.

“So I’ve had those events, but they’ve not made me look at my pension. Buying a house is about having money and having a kid is about having money then. You’re not really thinking about saving money up for later, it’s about having to have access to more money now […] I’d be looking at, you know, salary, and kinda mortgages and things like that rather than my pension.” (Male, 25-34)

“I have gone through marriage and bought 2 houses and had 3 children, and funnily enough none of these events have ever prompted this [to think about pension]. The most significant event was a few years ago, when Covid happened, we [participant and husband] reviewed our finances but pensions weren’t in there. We took life insurance, sorted our wills out. All these other things occurred because it feels so long away, we are reasonably young.” (Female, 35-44)

Lastly, a very small number of participants described either engaging with their pension on an ongoing basis or after being prompted by a pension review. This meant they did not need a life event specifically as a trigger for action.

Hearing of the positive and negative experiences of family members, friends or colleagues was another trigger for action

Quite a few participants, predominantly women, talked about hearing the positive and negative pension-related experiences of family, friends or co-workers and how these discussions made them think about their pensions. Seeing others struggling financially in retirement due to the lack of pension savings was mentioned by a few participants as a trigger for action such as contributing to a pension, increasing their contributions, being in control of their pension pots or updating their beneficiaries.

“My mum’s just gone back to work and she’s 73 because she cannot survive on the pension she had. That made me think I really need to assess mine [pension] as I do not want to be doing that. She’s quite happy to be back at work, she’s got a dodgy hip and should not be working at her age. What we all know is the state pension is not enough to live on.” (Female, 45-54)

“Seeing older people that are trying to survive off a state pension, you know sitting there in the absolute freezing cold worrying about how they’re going to keep warm or have meals or that kind of thing […] I pay something stupid like 12% and it’s a lot of money coming out of my pay, but my employer doubles what I put in. So it kind of makes it worth it then, because you know what I’m not going to be one of these old people sitting there worried about the heating.” (Female, 25-34)

A couple of participants made particular reference to the lifestyle they would like to have when they retire compared to others they have seeing retiring, and explained how that motivated them to contribute to a pension or contribute more as that offered them a better sense of security.

A small number of those in the 18-24 group felt that curiosity had led them to take actions, e.g. being in employment for a couple of years and being curious about their pot amounts and when they will retire. A handful of participants explained how the retirement of colleagues prompted them and their co-workers to look into when they will retire themselves or act on their pension.

“People at our company seem to retire quite early and they all seem to have really good pensions […] seeing them has definitely influenced what I’m doing with it.” (Male, 35-44)

Checking and amending contributions or seeking further information were the actions taken as a result of receiving pension-related information from pension providers and employers

A number of participants were prompted to take action, e.g. checking their pension pot, after receiving information from their pension provider. However, some reported that while receiving their annual statement led them to check their pension, they not act on it.

Other information received from the pension provider that prompted participants to action included emails/reminders that led them to check their pension, presentations/seminars delivered at the workplace, and regular market reports from the provider with products they were recommending.

Nonetheless, a small minority felt that receiving information, e.g. a statement, did not lead them to take any action, with one participant reporting that they found it difficult to digest the information.

“ […] so I probably log into my account once a year when I get the letter. I’m only prompted when I get the letter, but other than that, no, I wouldn’t really say that I’ve taken much action.” (Female, 25-34)

“I get yearly statements which triggers me thinking ‘am I gonna have enough?’ […] There is more choice now on how to take your pension compared to the past. […] I have held off looking at them online cause I’m a bit nervous about what’s happened over Covid in case I’ve lost loads of money. I don’t want to know that yet.” (Female, 45-54)

A few participants were prompted to take action after receiving information from their employer. This information was received in different formats and led to different types of action including:

• Getting information about adjusting their pension contributions for tax purposes, and workplace announcements about changes to employer contributions

• Receiving a letter from a previous employer encouraging them to move their pension elsewhere and giving them a financial incentive to do so, which prompted them to speak to a financial advisor

• Attending pension-focused meetings at work with specialist organisations (“Wealth at Work”), which led to increasing monthly contributions

• Pre-Covid, the employer offering quarterly sessions with a pension advisor to all employees. This had not been reinstated but it was seen as positive that the employer was encouraging employees to seek pensions-related advice.

“I remember receiving a letter and I’m not gonna lie I was just like it was a quick like flick through it, seeing something but I can’t even remember the papers properly it was just something that I just got the papers and put them away and it’s just like yeah okay, it’s just like, like too much.” (Female, 18-24)

A few participants acted after speaking to a financial advisor, receiving free guidance and conducting their own research

A small number of participants said that receiving paid for advice, e.g. via a financial advisor, prompted them to act on their pension.

The advice received revolved around where best to invest pension funds; merging or not different pension pots as part of getting married, the Covid-19 pandemic and reviewing their finances, whether moving pension to a different provider was beneficial or looking at pensions alongside life insurance options and other financial matters. A handful of participants were prompted to act by receiving free guidance.

• Sources of free and impartial guidance quoted by participants included the government-offered pension review when they were approaching retirement age, pension providers and the Pension Wise services.

“ […] Also engaged with [pension provider name] for free. You don’t pay for the advice but they make money if you take up any of their recommendations. They told me to leave everything as it was and it didn’t cost me anything.” (Male, 45-54)

“Pension wise is a government scheme which gives advice. I’ve spoken to them; they limit the discussion to one hour once a year. I did speak to them to try and get the basics in place.” (Male, 55-65)

Some participants reported being prompted to act after conducting their own research. Participants’ research was motivated by a variety of financially related reasons, including:

• Finding general information about risk levels to improve their understanding of pensions

• Understanding the tax benefits of contributing to their pension

• Topping up their pensions to retire early and working out how much money they will receive to inform decisions about earlier retirement. Sources of information participants mentioned included Google articles, gov.uk website, forums such as Reddit but taking the latter ‘with a pinch of salt’, the Money Saving Expert Website, and other sources they recognised as having authority and avoiding informal sources.

“It was just working out how much money I would get when I would retire really, it was the basis of I know you get so much from the state but didn’t know how much it was or when actually I could start doing it. I mean if I want to retire at 64 say I know I’m going to have to manage without a state pension for two and half years before I can even get that so just making sure I have enough money to do what I wanna do when I retire.” (Male, 55-65)

Young age and a lack of confidence or understanding were cited as reasons for inaction with their pensions

Young age Similar to the finding in previous sections about younger participants perceiving their pension as something in the distant future, for participants in the 18-24 age group, their age was a key reason for not engaging with their pensions. Being early in their careers meant many had not given their pension much consideration as they had only been contributing for a short time.

Pensions did not feel significant for this age group, with participants expressing that their pension would be more important to them as they got older.

“I’m not really thinking about it right now because I can work and get money and not relying on it.” (Male, 18-24)

Lack of confidence or understanding A lack of confidence or understanding was another key reason participants had not taken more action with their pensions. Some female participants felt overwhelmed by the amount of information there was to read and understand.

If they were not confident or did not understand their pensions, they were likely to have limited involvement with their pensions, despite recognising their significance. Other participants reported ‘avoiding’ their pensions – despite wanting to increase their contributions and update personal details, they did not know how.

Male participants in this research were less likely to express a lack of confidence or understanding. They were more inclined to mention having more pressing financial concerns or their young age as the main reasons for not engaging with their pensions.

“This sort of thing scares me, you know I’m a responsible person, you know good education but some reason I get a bit of brain fog and I think that’s to do with my background thinking about finance. I use the word ‘finance’ that doesn’t feel right either, money, cash, a lot of the way I think about it is cash so it’s hard for me to connect to the abstract quality and deferred quality of pensions. Hard for me to make sense of it really.” (Female, 55-65)

“I’m paying it, I’ve never looked into it. I’m one of those like oblivious to it, I know I’m paying something, something’s going in and it’s there but I’ve never looked really into it […] I find it too much looking at it on black and white. I’m just like ‘yeah I know it’s something going towards something for future’ but […] any of the details I don’t read anything, I just find it too much, it’s just too much information to take in.” (Female, 18-24)

Lack of information and dealing with more pressing financial concerns meant participants did not review their pensions

Lack of information Female participants mentioned that a lack of information resulted in reduced engagement with their pensions. A lack of information appeared to be linked with low confidence or understanding about their pensions. These participants expressed that being taught the importance of pensions and basic pension information from an early age would have helped to inform their understanding.

Some participants felt that pension education had been left to them to navigate. Other participants reported that, although they received communications about their pensions, they did not have the information they needed, e.g. that they could increase their contributions.

“I know we can make additional contributions because a colleague does that. But outside of this we aren’t given any information. If I go to finance they might provide it but it’s not given freely, openly. We don’t get any statements. We aren’t given online statements or paper statements. Our finance department isn’t as thorough as others are, or payroll officers I should say.” (Female, 35-44)

“For our generation it is what it is. We can try and put as much impact now but personally if I was sat down at 16,17,18 [years old] this is the importance of it, I would’ve felt more informed and more likely to engage if I had more information.” (Female, 35-44)

More pressing financial concerns Having more pressing financial concerns was another reason which meant that participants did not engage with their pensions. Although this was one of the key reasons for inaction quoted by men, female participants also mentioned this quite frequently.

Participants discussed needing the money they would pay into their pensions now as they were freelance, had limited disposable income due to raising young children and the cost of living. Limited disposable income was often mentioned alongside the current cost of living situation, participants acknowledged the impact that the rising cost of bills was having on how they prioritised their saving and spending.

“It becomes a lesser priority for some reason, and I can’t really pinpoint what that reason is […] your house insurance and your car insurance and your tax, you do all those things second nature but actually the pension seems to be this kind of like I don’t know. It seems to sit slightly outside of all that for some reason.” (Female, 35- 44)

Pension communications preferences

Mixed views were expressed about letters and emails as a form of pension communication

Many participants mentioned receiving letters about their pensions in a positive way, but a smaller number of participants were less favourable. Those who preferred letters as a method of pensions communications often mentioned that paper copies meant information could be held on to for future reference and that a letter was less likely to go missing in comparison to an email.

Some participants expressed that they were more likely to take notice of a letter as it felt more ‘important’ or ‘formal’ than emails or other types of communication. However, some felt that there was less need for letters given that finances tended to be managed online nowadays.

“I’m generally happy online but I do like to get something in the post. I like to have that hard copy of the annual statement that I’ve got to hand.” (Male, 45-54)

Several participants felt positive about receiving emails as a form of pensions communication, with a limited number feeling negative towards emails. These participants tended to prefer emails because they were accessible and could include links to allow them to access their pension portal online. However, it was not always easy to tell which emails were a ‘scam’ and which were real.

“Maybe do both, insert a link in the email to make it interactive and give you more information than a letter possibly can.” (Male, 25-34)

“Sometimes electronic things can be unreliable and you never know where it can go or if you even receive it in the first place.” (Female, 18-24)

Participants had different preferences about pensions communications and were more likely to engage if the communications suited them

Some participants preferred speaking to someone over the telephone as a form of communication about their pension; it was important for participants to be able to speak to a ‘human’ rather than receiving generic communication. Participants were also keen to receive advice on where to invest their pensions.

However, there were some reservations about telephone calls, with some reporting they may ignore a phone call if they thought it was a scam. Participants who preferred receiving text messages felt they were more likely to see and react to these messages than other forms of communication. One participant described how receiving a text message telling them to check their pension portal online would encourage them to log on.

“A courtesy call would be nice at the end of the tax year, ‘did you know this is what you’ve got [in your pension]? Did you know you could be getting more if you put in an extra tenner or whatever?” (Female, 45-54)

A few participants spoke positively about an online chat function where they could talk to someone to get information about their pension. Similarly, other participants mentioned that a chat function on their pension provider’s website or app to seek information about their pensions would be helpful. However, some participants felt there was less need for communications about their pensions because they had access to their pension portals which were easily accessible through smartphone apps.

Pension apps gave participants access to a wide variety of pensions information and management tools. Participants had different preferences for types of pensions communications but there were no clear patterns across age, gender or income. This suggests that the types of pensions communications that providers use should be tailored to individual needs to ensure the highest levels of engagement.

“It’s an app in my business, I logged in this morning it shows news, documents, the scheme, contact numbers, tier change, forms, pensions links ABCs, paying extra, expression of wish. As an app it works really well, and is all there, its secure […] something maybe other companies should look into.” (Male, 35-44)

“A lot of people are on their phones nowadays anyway so if it’s there and it’s handy, it’s easy to access and makes you look more.” (Male, 25-34)

Most participants were interested in receiving pension information once a year

Younger participants were more positive about receiving reminders. Many participants felt positive about the prospect of receiving all pension information once a year, in one place. The majority of participants thought that having all of their pension information in one place would be useful. A small number of participants indicated that every 6 months or quarterly might be helpful to them.

Participants mentioned that this approach would stop them from having to remember multiple passwords, which appeared as a common barrier to pension engagement. A few participants noted not knowing where some of their pensions were, for example from previous jobs, or who they were with, so welcomed the option to access their pensions in one place. These findings suggest that pension dashboards may have a positive impact on engagement.

“I think that’s a good idea actually [receiving pension information once a year]. It would be good if it’s aggregated and has your state pension on there as well so that you know what you’ll get if you choose different scenarios when you choose to retire.” (Female, 45-54)

“So mine are with banks and they’re always changing so then you have to get a new log in, a new password […] that gets a bit annoying for me because which one’s with which, I can’t remember.” (Male, 45-54)

Participants were asked their attitudes towards receiving reminders to prompt engagement with private pension pots. When participants received reminders, even if they did not look at it in detail straight away, many said they would skim the information for an overview and file it away for future reference. Younger participants (aged 35 and under) tended to feel more positive towards reminders than older participants. Younger participants typically stated that it was helpful to be reminded of their pension and to know what was ‘going on’ with it.

“It was helpful that [letter from pension provider] was being sent so I was aware why it was going in there, how much, and what percentage, to make you aware of everything. It was helpful.” (Female, 18-24)

The best times of year for pensions communications mentioned included a new calendar and tax year, but several participants had no preference

A handful of participants said the start of calendar year would be a preferred time to receive information on their pensions because it coincided well with their New Year’s resolutions. Some mentioned that the start of the calendar year worked well because they would think about finances ahead of the end of the tax year in April.

The start and end of the financial year was also mentioned by a small number of participants.

“I get it at the end of the financial year but typically January, February, March are the months I’m looking at how much tax I’ve paid HMRC that year, what I think I might be paying next year, you know, do I want to think about overpaying? That’s when I’m making my financial decisions […] cold, quiet months. I use that as my planning window.” (Male 25-34)

Several participants had no preference about which time of year they received pensions information, stating that the time of year wouldn’t make much of a difference to their engagement. Some participants mentioned wanting to know when action might be needed, such as if there are fluctuations in financial markets, and that having a more personalised or frequent communications as they approached retirement would be beneficial.

“I don’t have a preference really. Like [other participant] said, down to tax reasons and things like that, it’s nice to be able to pre-empt what you’re going to be paying and stuff like that and if you do wanna overpay you can. But, yeah, I don’t really have a preference with it to be honest.” (Male, 25-34)

Future engagement with pensions

Many participants would engage more with their pensions in the future, particularly younger participants.

A small number expected to have the same amount of engagement through checking pensions portals to keep track Most participants said that they would engage more with their pensions in the future. This was especially true of participants in the 18-24 age group who often expressed having other priorities such as earning and spending money rather than thinking about their pensions.

These participants discussed engaging more with their pensions in the future when they needed to rely on them, closer to retirement. The 18-24 group in this research mentioned milestone birthdays as possible times in the future where they may start to think more about their pensions. In the meantime, participants would monitor the progress of the pensions through online pension portals.

“I think I’ll not really think about it until 10 years, probably until I’m going to retire because I don’t know what else to do with it.” (Female, 18-24)

“I probably won’t have any for a while, I will definitely start engaging more as I get older. Maybe when I’m 30, I’ll probably have a look.” (Male, 18-24)

Some participants across age, gender and income groups reported that they would have the same amount of engagement in the future. These participants were regularly checking their pension pots online and were usually actively saving for retirement. Participants expressed feelings of contentment towards how their pension pots were progressing when they received their annual statements and that it didn’t feel necessary to engage more, given the ability to check or update their online pension portals at their convenience.

“I think it’s one of those things that’s best to keep away from once you’ve got the ball rolling. Only when things change, or something needs updating – other than that I don’t think I need to look at the pensions regularly.” (Male, 25-34)

Younger participants expected to pay more into their pensions in the future, whereas older participants wanted to seek financial advice

Across all age groups participants identified paying more into their pensions as a form of future engagement. Young people are likely to be unsure of how much they will earn in the future and are therefore not able to plan as much for their retirement. Participants aged 18 to 24 and 25 to 34 said that they hoped to increase their contributions with their earnings in the future.

“Obviously the way it works […] you’re going to be contributing more further down you know in your career, in your career in like say 20 years, whatever as your career progresses and things. Currently that contribution is going to be fairly marginal compared to the future I can imagine.” (Male, 18-24)

Similar to the earlier finding relating to concerns about limited disposable income and paying into pensions, some participants in the 25 to 34 age group felt they would pay more into pensions once their young children had grown up. This would mean participants could increase their working hours and would no longer need to pay for childcare so would have more disposable income to contribute to their pensions. A handful of participants in the 55 to 65 age group considered seeking paid for advice as a way to engage with their pensions in the future. These participants wanted reassurance as they approached retirement age.

This was often due to a lack of confidence or understanding. Some participants expressed concerns about the trustworthiness of financial advisors and that they would seek recommendations from family and friends before approaching financial advisors.

“I definitely want to speak to a financial advisor […] you hear all these adverts about people trying to con you out of your pensions and your money […] instead of speaking to someone random, I’d rather speak to someone who’s recommended […] because I don’t understand it all at all.” (Female, 55-65)

Female participants outlined more types of future engagement than men, which included conducting their own research and seeking financial advice.

Women are likely to earn less than men and, as a result, contribute less into their pensions. The gender pensions gap in private pensions stands at 35%. However, this gap has reduced since the introduction of AE in 2012. Female participants in the focus groups discussed a greater number of future actions than male participants, who focused more on increasing contributions into their pensions.

“All I can say is that I think I’ll just find out more information on it and work with that. In the meantime, there’s so much out there I didn’t even know until now.” (Female, 35-44)

Female participants frequently mentioned conducting their own research to understand more about their pensions and future decision-making such as whether to increase their contributions. Female participants also discussed seeking paid for financial advice to inform decisions, such as advice about a lump sum payment from a pension and to help with general planning for retirement.

This is linked to participants conducting their own research, as paying for financial advice could be considered as a next step to participants doing their own research.

“I agree, I started engaging more with mine and will continue to do so and be much more involved with a financial advisor over the next few years or so about different options […] all about these different decisions, tracking over the next few years and looking at the value of that pension. We’ll engage more with it.” (Female, 45-54)

Higher earning participants were more likely to report paying more into their pensions pots as a type of future engagement.

Paying more into pension pots was the most common form of future engagement, especially with male participants earning more than £50,000 a year, who reported this as a future action more often than participants on other income bands.

“Pensions now I’m coming up to a point where I’m going to put more into it, I’ve paid off the mortgage but my kids are at university, once they finish I’ll put more salary in for tax benefits on that.” (Male, 55-65)

Within this income group, male participants aged 45 to 54 and 55 to 65 reported that once their mortgages had been paid off and their children had moved out of the family home, they would be able to increase their contributions to save for retirement. Male participants in the 18 to 24 and 25 to 34 age groups discussed earning more and using their pensions as a form of tax relief, as a means of saving for retirement in the future.

“I hope as the kids have grown older I’ll be able to contribute to a work place scheme that I’ll be in at that time, put extra contributions that way as well.” (Male, 45-54)

“For me, when I’m older it will definitely change and I’ll try and put more in and then also I think I’d pay more attention to what you can do with it, so what your options are really. I think that side of it will change for me as I get older.” (Male, 25-34)

For younger participants, changes to employment would prompt future engagement.

However, older participants cited getting closer to retirement age Participants in the 18 to 24 age group felt that changes to employment would prompt future engagement with their pensions. Changes to employment included starting a new job, progressing in their careers, or setting up their own businesses. Starting a new job may lead participants to review their current pensions and consider transferring them into their new pension pot with their new employer. Additionally, starting their own businesses would require them to set up their own individual pensions.

“I want to start my own business soon […] I’m planning for that so need to take my pension into account. I’ll be running my own business and I won’t have a pension from my employer matching it so will have to privately pay into one myself.” (Female, 18-24)

Despite being considered close to retirement, some participants in the 55 to 65 age band felt they would be more likely to engage with their pensions when they were nearing retirement age. It varied whether participants had already started planning for retirement and looked to re-engage nearer to retirement or that they were yet to start planning.

“I’m happy to get regular communication to know it’s still there, […] someone’s not run off with it […] then I’d leave it till close to retirement and thinking about drawing it down then I would get advice on what would be the best way to do it.” (Male, 55-65)

Conclusions

Engagement with pensions and life events

• Participants across all age groups had varying understanding of and engagement with their pensions, with some feeling more in control than others.

• Pension providers and employers could play a bigger role in increasing pension engagement by offering targeted information and support to people, especially at key life stages or events identified in this research, e.g.

• when changes that affect their finances occur (starting a new job, moving jobs, changes in work pattern, buying a house)

• when they experience events such as milestone birthdays, approaching retirement age, illness or changes to their family arrangements (having children, or getting married or divorced). Birthdays were not generally perceived as a good time of year to engage with pensions.

• Reasons for not engaging with pensions identified in the research were:

• perceiving pensions as something in the distant future

• lack of confidence or knowledge about the pension system

• lack of information. This appeared to be linked with low confidence or understanding of pensions, especially amongst women

• focusing on other financial priorities.

• Pension education provided both by the government (particularly, through simpler pension communications), and by schools, could help improve people’s understanding and engagement with pensions from a young age and address some of those reasons for inaction.

Pension communications

• The research identified that the most suitable times of the year to receive information about pensions (such as annual statements) included a new calendar or tax year. However, some participants had no preference about when this information was sent due to having ongoing access to their pension portal.

• This research found that participants mostly checked their pension pots through a pension provider app or online portal. Most preferred to receive communications about their pensions on a yearly basis and all at once, with a small number wishing to have more frequent communication (such as every 6 months or quarterly).

• Preferences about how pensions information was communicated were mixed, with letters and emails being the most popular. Some participants felt speaking to someone over the telephone, receiving text message reminders or an online chat function would be more helpful. However, other participants felt there was little need for pension communications as they had access to their pension via an app or online portal, to check at their convenience. This suggests that for participants to engage more with their pensions, communications have to be tailored to their individual needs and preferences. Future engagement with pensions

• Younger participants (aged 18-24) tended to see their retirement as far into the future and not something they were actively thinking about. However, many acknowledged the importance of saving into a pension.

• Contributing more was the form of future engagement many research participants anticipated having with their pension. Participants aged 25 to 44 referred to the cost-of-living crisis and the impact this was having on their finances and disposable income, and therefore their ability to save for retirement. Participants of these ages were more likely to have children, which meant they were less able to contribute to their pensions whilst managing the costs of raising children (which often included childcare costs) and/or working reduced hours. This suggests that with a finite amount of disposable income, people may prioritise other spending over saving for retirement at certain stages of their lives.

Bibliography

1. DWP Official Statistics - Workplace pension participation and savings trends of eligible employees: 2009 to 2021 (2022)  

2. Office for National Statistics: Early indicator estimates from the Wealth and Assets Survey: Attitudes towards saving for retirement (2020): Table 2.26.  

3. Nest Insight: Life events and pension engagement (2017)  

4. TPR & FCA: Pensions consumer journey feedback statement (2022) 

5. Nest Insight: Beyond the defaults (2020) 

6. Melbourne Business School: The customer journey through retirement planning: Mapping the complexity of the Australian retirement planning ecosystem (2019):  

7. DWP: Understanding member engagement with workplace pensions (2023)  

8. FCA: Financial Lives Survey (2020): Tables 11 & 20 

9. DWP: Workplace pensions and Automatic Enrolment: employers’ perspectives (2022)  

10. The Money and Pensions service: Engaging People with Pensions via Digital Dashboards (2021)  

11. Pensions Policy Institute: Engagement of young adults with pension savings (2016)  

12. DWP: The Gender Pensions Gap in Private Pensions (2023)