Nearly half (46 per cent) of defined contribution (DC) savers are not aware they receive tax relief on their workplace pension contributions, research from TPT Retirement Solutions has revealed.

The research suggested that a "concerning" proportion of savers don’t understand two crucial components of workplace pensions, as workplace contribution levels work was identified as another "big issue" alongside tax relief.

In particular, the research found that nearly a quarter (24 per cent) of DC savers are unaware that they can change their contribution levels, while almost two-thirds (62 per cent) who are eligible for a higher employer contribution once they opt-in are only receiving the minimum amount.

In addition to this, the survey revealed that a further 9 per cent are unaware that their employer is contributing to their pension.

TPT Retirement Solutions highlighted the findings as demonstration of the need to further engage people on how DC pensions work, and on how to get the most out of a workplace pension, as survey respondents reported feeling "overwhelmed" by their pension options.

In light of these concerns, TPT introduced a series of live pension planning and financial wellbeing webinars, as well as a range of supporting material to help employers engage their employees in their workplace pension.

Over 1,500 members have now attended a webinar, with two thirds suggesting that the events prompted them to take action with their pension savings, including increasing contributions, consolidating their different pension pots, and exploring getting professional financial advice.

TPT is also planning to launch a new DC product that aims to make the transition from accumulation to decumulation easier for members.

The new offering will aim to provide a whole-of-life fund that moves into drawdown at retirement, flipping assets to income production.

Commenting on the plans, TPT Retirement Solutions DC director, Philip Smith, stated: “DC pensions put responsibility for a member’s financial future firmly in their own hands.

“Helping people understand how workplace pensions work is therefore essential. If we want savers to take an active role in their retirement planning, it’s imperative that employers and all trustees provide them with the right information, tools, and support to enable them to make informed decisions.

“Over the last few years, improving member understanding of their DC pension has been one of our top priorities.

“We’re now finalising our plans for the next phase of development, including significant investment in improving our digital experience and developing retirement solutions that better support members and make retirement simpler when they’re ready to start accessing their pension savings.”

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