Some 48% of employers are unaware of the services or help they offer to members of their defined contribution (DC) schemes, according to Aon.
The firm's Benefits and Trends Survey 2019, published today (26 March), also revealed that, when asked how they manage retirements in their DC plan, a fifth said members have access to independent financial advice.
The same proportion said members have access to annuity broking, while 12% said they used other methods.
The questions were posed to 200 employers in the survey, which was conducted between October and December last year.
Ahead of the contribution rate rise in April, with employer contributions growing to a minimum of 3%, 48% of employers surveyed said they needed to increase their AE contributions, while 45% said they did not. Only 12% were paying under the upcoming minimum at the time of the survey.
Furthermore, nearly three quarters (71%) said they have reviewed their pension offering since the pension freedoms were introduced in 2015, and 40% said they are planning to review their pension scheme more generally within the next year.
Some 63% considered employee financial wellbeing to be the responsibility of the employer, yet 42% said they plan to implement communications within the next year, 18% said products, and 36% said services such as access to financial wellbeing seminars.
Meanwhile, 137 employers said they used email to educate and engage employers on pension and financial related matters, closely followed by 111 and 110 which used an online self-service portal or printed communications respectively.
The number of businesses using group personal pensions (GPPs) rose three percentage points to 62% over 2018, while cost was the factor most likely to lead schemes to consider changing pension provider, at 61%.
Aon area director Martin Parish said employers understand the need for employee financial education, yet they are not backing this up with the right methods.
"Firms are keen to do more but they tend to stick to what they know - which doesn't necessarily address employees' needs," he added. "Pension freedoms have been a welcome innovation for many employees, but with greater choice and freedom come greater complexity and responsibility.
"However, at retirement, members often lack the relevant information to allow them to make the right decision - to retire or stay in work for longer."
He further noted that selecting the right tools and methods - face-to-face for those reaching retirement now, or modelling technology for those building pension pots - will be the key to successful engagement around financial wellbeing.
Parish continued: "When looking at the factors that drive schemes to change their provider, cost remains on top. However, it must be taken into consideration alongside other parameters such as performance of the default fund or adequate support for employees, not forgetting administration efficiencies for the employer."
A Hertfordshire-based recruitment agency and its managing director have been ordered to pay £10,890 after misleading The Pensions Regulator (TPR) over its workplace pension arrangements.
Master trusts have enjoyed positive returns across the three investment journey phases but there are some “early signs of concern” emerging around risk profiles, a Hymans Robertson master trust report reveals.
The HSBC Master Trust has become the first new master trust to be authorised by The Pensions Regulator (TPR), after having applied after the regime kicked off.
Professional Pensions has compiled a list charting the progress of master trust authorisation. View our list in full here...
Newton Investment Management’s Rob Stewart considers how DC schemes can respond to new rules on disclosing ESG policies