Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+

Latest News

UK employees ‘unconcerned’ about pension provision

by Personnel Today 12 Dec 2002
by Personnel Today 12 Dec 2002

UK
workers are relatively unconcerned about their pension provision, and are
generally satisfied with pension benefits provided by their employer, according
to a new study by Mercer Human Resource Consulting. 

The
findings of the research are dramatically at odds with the warnings of
financial analysts, and the conclusions of the recent Sandler and Pickering
reports, that a growing percentage of UK workers are not saving enough to meet
their financial needs in retirement.

Only
1 in 5 employees said they are concerned about their pension provision.  Some differences are observed across
industry sectors, and concern is highest in manufacturing (25 per cent) and
lowest in the NHS (15 per cent). 

Small
differences are also observed across age groups, where the percentage of
employees concerned about their pension provision is highest for 34 to 44
year-olds (25 per cent) and lowest for 16 to 34 year-olds and 55 year-olds and
above (both 21 per cent).

Dr
Patrick Gilbert, head of organisational research and effectiveness at Mercer,
believes there are several reasons why employees should be more concerned about
pension plans: 

–
There is a growing shortfall in retirement savings, currently estimated at more
than £27bn in the UK

–
An increasing number of organisations are changing from defined benefit to
defined contribution schemes, therefore shifting a greater portion of
responsibility and risk to employees

–
Employer payments to new defined contribution schemes are often lower than to
defined benefit schemes

Gilbert
said: "I suspect that many employees are in a state of denial.  It makes them nervous to think that they
could face financial difficulties in retirement, and many are confused by the
increasing complexity of financial choices they have to make."

Other
findings:

–
More than seven in 10 employees feel their pension plan is either ‘very good’
or ‘good, despite the retirement savings shortfall and the growing shift from
defined benefit to lower-cost defined contribution schemes

–
Some differences are noted across industry sectors, with the least favourable
ratings found in retail (58 per cent), and the most positive in the NHS (87 per
cent) 

–
Differences are also noted for length of service, with long-serving employees
having more favourable views about their pension plans 

–
Of those employees with less than two years’ service, only 6 in 10 (63 per
cent) believe their pension plan is good, compared with almost 8 in 10 (79 per
cent) of those with over 15 years’ service

Communication
of benefits

Despite
the growing complexity of retirement plans, and evidence indicating a general
level of financial illiteracy among employees, the majority of workers feel
they are well informed.

More
than 7 in 10 (72 per cent) say they can easily find answers to questions they
have about their benefits, including pensions, and almost 6 in 10 (58 per cent)
feel their organisation does a good job of communicating information about
benefits. 

Sign up to our weekly round-up of HR news and guidance

Receive the Personnel Today Direct e-newsletter every Wednesday

OptOut
This field is for validation purposes and should be left unchanged.

Dr
Gilbert said: "Pensions are inherently complex, and they have changed
dramatically in recent times. The fact is that most employees are not well
informed about their retirement income, and assume that things will somehow
work out for the best. Employees don’t know how much they truly don’t
know."

By Ben Willmott

Personnel Today

Personnel Today articles are written by an expert team of award-winning journalists who have been covering HR and L&D for many years. Some of our content is attributed to "Personnel Today" for a number of reasons, including: when numerous authors are associated with writing or editing a piece; or when the author is unknown (particularly for older articles).

previous post
Train conductors to strike at Christmas
next post
GMB calls for equal pay systems

You may also like

Postmasters could take ownership of Post Office

14 Jul 2025

Ethnicity and disability pay gaps: Ready to report?...

14 Jul 2025

Manager dismissed after covert recording with HR wins...

14 Jul 2025

Food sector warned it is facing a workforce...

14 Jul 2025

Gregg Wallace investigation: 45 allegations upheld

14 Jul 2025

Black TV professionals’ experiences of racism are rife,...

14 Jul 2025

Steep reduction in recruitment in June

14 Jul 2025

Two-thirds drink to cope with work stress and...

14 Jul 2025

Why online training won’t help reduce sexual harassment

14 Jul 2025

Three-quarters more likely to stay with employer who...

14 Jul 2025

  • Empower and engage for the future: A revolution in talent development (webinar) WEBINAR | As organisations strive...Read more
  • Empowering working parents and productivity during the summer holidays SPONSORED | Businesses play a...Read more
  • AI is here. Your workforce should be ready. SPONSORED | From content creation...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2025

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2025 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • Brightmine
    • Learn more
    • Products
    • Free trial
    • Request a quote
  • Webinars
  • Advertise
  • OHW+