For many employees, pensions can feel distant, complicated or simply less pressing than today’s financial priorities. Yet workplace pensions are an important part of an employee’s overall benefits package and can play a significant role in their long-term financial wellbeing.

For employers, the challenge is not simply providing a pension scheme. It’s helping employees understand it, appreciate its value and take an active interest in planning for retirement.

So, what can employers do to encourage greater engagement with workplace pensions?

1 - Make pension communications more relevant

Pensions can come with unfamiliar terminology, jargon and large amounts of information, which can make it difficult for employees to understand what’s most relevant to them.

Instead, communications should focus on the practical questions employees are likely to have. For example:

• How do I register for online access to my pension, or reset my login?
• Are my pension provider’s records up to date, including my address and contact details?
• How do I track down pensions from previous jobs?
• Where do I find pension contributions on my payslip, and how much is my employer paying in?
• What could my pension provide in retirement, and where can I explore my options?

Turn these questions into short, practical communications. A ‘get to know your pension’ email could explain how to register for the provider’s portal and check personal details. An annotated example payslip could highlight pension entries and explain where to confirm the employer contribution if it is not shown. For employees with old pensions, signpost the government’s free Pension Tracing Service, explaining that it finds scheme contact details rather than confirming pension ownership or value.

2 - Connect pensions with wider financial wellbeing

Retirement saving doesn’t exist in isolation. Employees may also be thinking about mortgages, household expenditure, savings and other immediate financial priorities.

Make sessions reflect those competing priorities. For example, a workshop on ‘Understanding your pay and benefits’ could bring together budgeting, pension deductions and the employer contribution. An employee saving for a first home may find this more relevant than a presentation focused solely on retirement. Acknowledge affordability rather than assuming everyone can pay more into their pension.

Show the employer contribution in pounds, not just percentages. As an illustration, if an employer pays 5% of a £30,000 full pensionable salary, that is £1,500 a year towards the employee’s pension, alongside their salary. Use your scheme’s actual contribution basis and explain any exclusions. If you offer contribution matching, show how it works and what employees need to do to receive it.

Keep education distinct from personal recommendations. Employers can explain their scheme and available support without telling employees how much to save or which investments to choose. Where a question needs individual advice, make the route to appropriate support clear.

3 - Make pension engagement ongoing

A pension presentation during induction may introduce employees to their scheme, but maintaining engagement requires communication throughout their career.

Build a simple communication schedule around manageable actions. At induction, explain who the provider is and when registration details will arrive. Follow up once the account is available with a login reminder. Later in the year, run a ‘find your old pensions’ session or explain how to read an annual statement. Keep instructions on the intranet so employees can find them when needed.

Use relevant milestones rather than sending the same message to everyone. With a pay review, remind employees how pension contributions are calculated and whether matching is available. When someone changes address, prompt them to update their pension provider as well as HR. For employees considering retirement, offer a session on understanding their statement and accessing guidance or advice.

Supporting better pension engagement

Improving pension engagement doesn’t necessarily mean communicating more. Often, it means communicating more clearly, at the right time and in a way that feels relevant.

By making pensions easier to understand, connecting them with wider financial wellbeing and keeping the conversation going throughout an employee’s career, employers can help their people become more informed and engaged with their financial future.

For businesses, this can also help ensure that a valuable part of the employee benefits package is better understood and appreciated.

Important information

The information provided is for general guidance only and reflects our understanding of HMRC rules at the time of writing. It does not constitute legal, tax, or accounting advice. Employers should seek specific advice from their accountant or tax adviser to ensure the approach taken is appropriate for their circumstances.