Experts have pointed out that the unclear way in which the system and charges of pensions plans is being set out has left many workers avoiding the issue all together.
Murky advice leaves workers at risk
New reports have been emerging that suggest that the wording of pension plans, which fail to clearly outline the risks and charges, is prompting numerous workers to opt out of plans that they may later need.
An initiative from the National Association of Pension Forms has found that large numbers of private sector employees are struggling to untangle information that would even “puzzle Einstein.”
Avoidance of pension plans spells trouble for retirement
The situation is being seen as dangerous because when people feel too confused by the pension plans to save money for their retirement, they could find themselves in trouble further down the line.
According to figures, around 14 million people in the UK are currently making no savings for their retirement. In later years, that number could likely become the amount of people who are struggling with their finances from a state pension after they retire.
Workers feel they are being hard done by
It has been suggested that another reason for the lack of payments into pension plans is that many workers feel that it is not a lucrative enough way to save given the amount of risk associated with some plans.
Those who save for their pensions privately, however, are also said to not be making enough savings and may only be adding to the threat of a future pensions crisis.
Being aware of one’s pension and the amount of income that can be expected after retirement is growing increasingly important.