New data reveals that almost half (46%) of women don’t think they have saved enough into their pension pot for retirement, whilst men are much more confident in their retirement savings with only a third (35%) concerned that they haven’t enough saved.

To make matters worse, more than one in four (26%) large businesses report an increase in the number of employees pulling out of workplace pensions, with the numbers expected to rise thanks to the cost-of-living crisis, as more than half (55%) of female employees have cut non-essential spending.  

The new research – from workplace pension and savings fintech Cushon, conducted as part of its new whitepaper – comes at a time when  value for money of pensions is being questioned, with the Government recently consulting on the issue, and its findings due to be published later this year. In its new whitepaper, Cushon is calling on the Government and industry to start listening to employees to drive pensions engagement and ultimately ensure better pensions value for money. 

Interestingly, almost a third (30%) of female employees want higher contributions to help them save for the future during the cost-of-living crisis, while nearly all women (92%) agree that employer contributions are important.

While female employees cited employer contributions as important, they also said that easily understood communications (32%), and a mobile app that allows members to easily check and manage their pension (31%) constitutes as pensions value for money. 

Employers have a role to play in driving value for money by not only increasing their contribution rates, but also making pensions more inclusive and accessible for everyone. If employees don’t believe their pension offers value for money, there’s still a risk that they’ll opt-out or reduce saving which could impact their financial wellbeing in retirement.  

Steve Watson, Director of Policy and Research at Cushon said: “It’s hugely concerning that such a stark gender gap continues to exist in pensions. The research is clear - women understand that a massive factor on the value of their pension pot is ultimately down to how much is paid in. That’s why so many are calling on their employers to up their pension contribution levels. 

“When it comes to what’s important to employees in pensions, as obvious as it sounds, it’s time for us as an industry – and employers throughout the country – to listen to employee concerns and meet their expectations. This will encourage employees to continue saving into their pension and avert a potential retirement savings crisis.”