Workplace scheme providers’ lack of “new and progressive products” is to blame for continued low engagement with pensions despite the success of auto-enrolment (AE), according to Cushon.
Research today (16 July) from the savings and investments platform - formerly known as Smarterly - found AE provision has not resolved low pensions engagement rates with two thirds of eligible Britons deeming pensions "far too complicated".
The research also found more than a third (34%) of HR managers now also see low employee engagement levels in workplace pension schemes as a challenge.
One in three employers surveyed said it was also a challenge to get employees to contribute above minimum contribution rates, while nearly two-third (65%) said providers were to blame for a lack of :new and progressive products" in the industry.
For this reason, more than half of employers surveyed said they had planned a review of their pension provider in the next six months.
Cushon head of proposition Steve Watson said: "Over the years, other rules and regulations have made pensions far more complicated than they need to be which is deeply affecting the level of engagement.
"The industry is crying out for more innovation to help employees take more of an interest in their pensions and savings."
The number of FTSE 250 companies moving to a master trust is set to increase over the next two years, according to research by Willis Towers Watson (WTW).
Members of Phoenix’s defined contribution (DC) master trust will be allowed to access their pension savings via in-scheme drawdown.
Government plans to create jobs for 16-to-24-year-olds will see the state paying employer pension contributions, it is expected.
A lack of steadfast regulation around unbundled defined contribution (DC) schemes makes them a ticking time bomb for firms and members, says Salvus Master Trust.
Available on demand... Louise Sivyer and Michelle Cracknell among the speakers at PP's DeskFlix event on the Future of DC
The latest virtual event in PP’s DeskFlix series took place on 7 July