More than one in four employees unaware their pension is invested 

More than one in four UK employees with a defined contribution pension are unaware that their pension savings are invested, highlighting growing concerns about financial literacy and retirement preparedness, according to new research from WEALTH at work.

The study of 2,000 UK workers found 27 per cent do not realise their pension is invested in a range of funds, such as stocks and shares, up from 21 per cent in 2025. The increase suggests employees’ understanding of pensions is declining despite the widespread adoption of automatic enrolment. 

The findings reveal a disconnect between confidence and knowledge. While four in five (80 per cent) employees said they know how much they contribute to their pension and 77 per cent understand their employer’s contributions, almost one-third (32 per cent) do not believe they are saving enough for retirement. 

Meanwhile, one in 10 (10 per cent) admitted they do not know how much is being paid into their pension at all. 

The research points to what WEALTH at work describes as a growing “default and disengage” mindset, where employees continue contributing to workplace pensions without actively engaging with how their retirement savings are invested or whether contributions are sufficient. 

Jonathan Watts-Lay, Director at WEALTH at work, said: “While auto-enrolment has been successful in getting people to start saving, the research suggests an emerging ‘default and disengage’ mindset, where individuals blindly contribute without fully engaging with their pension as a long-term investment. 

“There is a real risk of false confidence when it comes to pensions. Many people believe they understand their savings, but significant knowledge gaps remain, particularly around how pensions are invested and whether contributions are sufficient.” 

He said reviewing pension investments and contribution levels could help employees make more informed decisions and improve long-term retirement outcomes. 

For employers, the findings reinforce the growing importance of financial wellbeing as part of a broader workplace health strategy. As financial pressures continue to affect employees’ confidence about the future, experts argue organisations have a key role to play in helping people understand, engage with and take greater ownership of their retirement savings. 

Watts-Lay added: “These findings highlight the need for employers to go beyond enrolment and provide ongoing financial education, helping employees to better understand, engage with and take greater ownership of their pension savings. 

“It’s also important that, as retirement approaches, employees are supported with appropriate guidance and consider whether they would benefit from investment advice to help them understand their options and make informed decisions about how to access their savings.” 

The research was conducted by Opinion Matters between 29 May and 3 June 2026 among 2,000 UK workers aged 18 and over with a defined contribution pension.