Could employers be the key to better pension engagement? L&G launches new workplace pilot to find out

• Millions are not saving enough for retirement and are disengaged from their pension, particularly among midlifers; two in five people aged 40-54 have not interacted with their pension in a year
• Employers could close the gap; only 16% of employers currently provide guidance on preparing for retirement but new L&G research suggests they can have a huge impact
• L&G is launching a new pilot; testing whether making pension education a required part of the working day could help employees engage with their savings and encourage them to take action

The pilot forms part of Decades Ahead, L&G’s commitment to help people achieve greater financial security over the long term. Its research highlights two related challenges: millions are not saving enough for retirement and many are not engaging with their pension to understand where they stand or what action they could take. The engagement challenge is particularly pronounced in midlife. Among 40-54-year-olds with a DC workplace pension¹:

• Two in five (41%) haven’t interacted with their pension in the past year;
• One in four (25%) can’t estimate how much they have saved; and
• Almost a third (31%) have never looked for pension information or advice

Employers could be key to closing the pension engagement gap

L&G’s research points to employers being an important but underused route to improving pension engagement. Just 16% of employers currently provide information or guidance on preparing for retirement, according to the Department for Work & Pensions (DWP)². A quarter (24%) of people with a DC workplace pension go to their employer for advice on it and the research indicates they are significantly more engaged with their retirement savings as a result. L&G’s research found that in the past year:

• 45% of people who go to their employer for advice checked their pension balance, compared to just 29% of those who didn’t;
• 21% increased their contributions, versus 11%; and
• 13% changed how their pension was invested, versus 7%

L&G is now testing what difference employers can make when pension education is brought into the workplace rather than relying on employees to seek it out themselves.

Putting the workplace intervention to the test

The Building Future You pilot, involving a sample of L&G employees, will explore two related questions: how employees respond when pension education is made readily available through the workplace, and whether required participation leads to greater engagement and action than a voluntary approach. All participants will have access to the same support, including short video modules and a new digital quiz designed to help them understand their pension priorities and identify practical next steps. Half of participants will be required to complete the learning as part of their working day in the same way they might other workplace training, such as Health & Safety, while the other half will be offered the tools on a voluntary basis.

L&G will compare engagement and action across the two groups, assessing which is more likely to check pension balances, review contributions and use retirement planning tools. The findings will help build evidence on the role employers can play in tackling pension disengagement and inform future support provided by L&G alongside wider policy discussions.

References

¹Public First conducted a major survey of 8,008 working age adults (18-69) between 11th October 2025 and 21st October 2025. The results were weighted to be nationally representative.  

As part of the research, we modelled the adequacy of pension savings for different groups. To estimate wealth at the point of reaching the State Pension Age, we used the Wealth and Assets Survey, the Annual Survey of Hours and Earnings and the Annual Population Survey.

²DWP Employer Survey 2024, Published 16 May 2025.