Employee confidence in pensions is low due to lack of knowledge

According to the National Association of Pension Funds (NAPF), 4.7 million UK employees do not take part in their occupational pension scheme and, of this, 66% did not check whether there was a pension offered at the company when they joined and 45% have no knowledge of the tax breaks available on pension contributions.

NAPF chief executive Joanne Segars believes it is up to the Government and employers to increase employee confidence in pensions by building knowledge among staff.

She said: "It is vital there is a co-ordinated campaign to build understanding and confidence. It should be led by the Government, and is actively supported by the pensions industry, worker representatives and business."