10 Practical steps to improve workplace pension engagement

Many employers invest significant time and cost into providing a workplace pension, yet almost half of employees still struggle to understand how it works or why it matters to them. According to The HR Director, nearly half of UK employees with a defined contribution workplace pension say they are unaware of what their pension is invested in, indicating significant gaps in understanding. These gaps are rarely about lack of interest; more often, they reflect how pensions are explained, when communication happens, and whether the message connects to real life rather than regulation.

For employers, improving pension understanding is not about adding complexity or overwhelming people with information. It is about clarity, consistency, and helping employees see the pension as a meaningful benefit rather than a background deduction. The checklist below sets out the most effective steps employers can take to educate and internally promote their workplace pension in a way that builds confidence and engagement.

1. Start with the why, not the rules

   Begin by explaining why the workplace pension exists and what it is designed to do for the employee over time. Focus on the role it plays in long term security, employer contributions, and future flexibility, before introducing technical details. When people understand the purpose, they are far more likely to engage with the mechanics.

   
   

2. Explain employer contributions in simple terms

   Many employees underestimate the value of employer contributions or see them as abstract. Make it clear that this is additional money going into their pension as part of their reward, not something they receive elsewhere if they opt out. Clear examples that show the difference employer contributions make over time help bring this to life.

   
   

3. Use simple language consistently

   Avoid pension jargon wherever possible and replace it with language people already use in their everyday finances. If technical terms are unavoidable, explain them clearly and consistently across all communications. Mixed messages or changing terminology quickly erode confidence and trust.

   
   

4. Show employees what happens when they change jobs

   Help employees understand how pensions accumulate over a working life and why multiple pots are common. Explain what happens to their workplace pension if they leave, what options are available, and where to find guidance. This context helps people see their pension as a long term asset rather than something tied only to their current role.

   
   

5. Communicate little and often, not once a year

   Annual statements alone are not enough to build understanding. Reinforce key messages at natural moments such as onboarding, pay reviews, promotions, and life events. Short, timely reminders are more effective than dense explanations delivered infrequently.

   
   

6. Signpost trusted guidance and support

   Employees value knowing where to go for impartial information. Signposting trusted sources such as MoneyHelper, alongside internal resources, helps employees explore their options with confidence and reduces the pressure on HR teams to answer every question directly.

   
   

7. Make pensions part of the wider benefits conversation

   Position the workplace pension alongside salary, bonuses, and other benefits, rather than as a separate or secondary topic. When pensions are treated as a core part of reward, employees are more likely to recognise their value and engage with them.

   
   

8. Encourage questions without judgement

   Create space for employees to ask questions at all levels of understanding. Pensions can feel intimidating, and many people worry about asking something they think they should already know. Normalising questions builds trust and improves engagement over time.

   
   

9. Reinforce choice and flexibility where appropriate

   Where choice exists, explain it clearly and without bias. Employees who understand their options feel more in control and are more likely to stay engaged with their savings. Even when choice is limited, clarity around what is possible and why helps set realistic expectations.

   
   

10. Measure understanding, not just participation

    Participation rates tell only part of the story. Use simple surveys or feedback loops to understand whether employees feel confident about their pension and know where to find information. This insight helps refine communication and focus effort where it is needed most.

Why this matters

When employees understand their workplace pension, they are more likely to value it, trust it, and engage with it over time. Clear communication reduces confusion, improves confidence, and strengthens the relationship between employer and employee. The simpler the message, the stronger the engagement, and the more effectively the workplace pension delivers on its role as one of the most valuable long term benefits an employer can offer.