Pensions ignorance widespread among members and trustees

Less than half of defined contribution pension scheme trustees believe that employees paying into their scheme know how much their pension is worth, according to a poll.

HR advisory firm Aon Consulting asked trustees at 120 firms how much they and their members understood about their pension scheme.

Only 39% were confident that employees knew how much they would be entitled to on retirement – while one in five trustees themselves had no idea.

Despite these knowledge gaps, communication with members came way behind investment as the most important issue for defined contribution schemes to address in the future.

Helen Dowsey, principal at Aon Consulting, said: “The gap between trustee knowledge of the estimated level of members’ projected pension pots and member knowledge is a big problem that needs to be addressed to ensure the future health and viability of the defined contribution model.

“Although the findings show that this issue is acknowledged by some trustees, it is clear it needs to become more of a priority.”

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