Andy Burnham, who looks set to replace Keir Starmer as Prime Minister, has been urged to place pension education and communication at the heart of any future policy changes, after research found that legislative reform can discourage savers from engaging with their pensions.

Research from Like Minds found that more than half (53 per cent) of workplace pension scheme members believe legislative changes can make pensions feel more complex or confusing, or actively discourage them from reviewing their pension.

This was almost twice the proportion of members who viewed policy change as an engagement opportunity, with 27 per cent saying legislative changes encouraged them to look at their pension.

Like Minds acknowledged that pension policy would need to continue evolving to improve outcomes, but warned that reforms could undermine confidence unless they were accompanied by relevant, accessible and well-planned communications.

Indeed, the report revealed tha that younger members appeared particularly sensitive to legislative changes, with those aged between 18 and 44 more likely than members aged 45 and over to report an impact on their engagement.

Therefore, Like Minds argued that legislative communications should lead with the effect on individual members, rather than policy detail, and use personalised, plain-language guidance to turn periods of reform into engagement opportunities.

The findings also highlighted a wider confidence gap among workplace pension savers.

While 72 per cent of respondents said they understood their pension, only 53 per cent felt confident planning for retirement.

Meanwhile, 48 per cent were either unsure whether they were on track for retirement or believed they were not, while 45 per cent expected to make lifestyle changes after retiring.

However, 61 per cent wanted to learn more about pensions and retirement, suggesting that members were not necessarily unwilling to engage but may have been discouraged by complexity and a lack of appropriate support.

The research also found that only 44 per cent of members recalled receiving a pension communication during the previous 12 months.

Among those who remembered receiving one, just 21 per cent took the action requested.

Members identified everyday language rather than technical terms as the most important way to improve understanding, cited by 43 per cent, followed by clear explanations of why an issue mattered (37 per cent) and step-by-step instructions (33 per cent).

Like Minds director, Jeremy Petty, said: “We have seen a huge shift in pensions policy in recent years, and there are still many planned changes in the pipeline. Even more seem likely to follow, especially as we see a new prime minister establish himself and potentially appoint a new pensions minister.

“This comes at a time where there is a massive pensions engagement gap in the UK, and people are not saving enough to secure a comfortable retirement. Member confidence is lacking. Action stalls as a result.

“Further reform and legislative change can absolutely help address adequacy issues, but it is essential that they’re complemented with good communication or they will backfire.

“We, as an industry, cannot afford to slide backwards in terms of member engagement, driving further distrust and confusion, and worsening the problems we set out to solve. Change may be important, but we can’t get lost in the policy and leave members behind in the process.”

Petty called on Burnham’s government to give education and communication the same priority as pension policy, arguing that savers were willing to engage but did not always know how or where to begin.

“Our focus should be better education and clearer communication to support more active and confident decision-making by savers,” he continued.

“Only then will we start to see truly better pension outcomes where there’s no member left behind.”

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