Savers with workplace pension schemes are significantly less likely to understand or engage with their pensions compared to their counterparts with personal pensions, according to new research.

Data and payments platform Moneyhub revealed that around a quarter of savers with a workplace pension, either DB (26%) or DC (23%), never check their pension pots.

In Comparison only 11% and 10% of those with self-invested personal pensions (SIPP) or self-employed pensions never check their pension.

The disparity is especially concerning, Moneyhub said, taking into account the fact that savers with workplace pensions typically have less understanding of the funds they have set aside for later life.

Several of Moneyhub’s in-depth interviews found that participants with defined contribution pensions were unaware that they were an investment.

In addition, just 34% of DB and 39% of DC pension scheme holders said they would know the ballpark amount of money in their pension pot compared to 51% of personal pension scheme holders. 

Moreover, savers with workplace pensions have less understanding of how to engage with their pensions and navigate their accounts. 15% and 13% of DC and DB pension holders, respectively, said they would not know how to check their predicted pension income, with this falling to just 5% for those with personal pensions.  

Mark Horwood- James, managing director of Moneyhub Personal Finance Technology said: “With the majority of employees relying on workplace pension schemes for funding their retirement, it is essential that action is taken to improve people’s engagement and interaction with their pension savings.

“The government and pension providers are uniquely placed to embrace Open Finance technologies to break down barriers to engagement and help support savers up and down the country.”

• Research conducted by Censuswide among 1,004 pension savers. The research fieldwork took place between 2 August and 7 August 2023.