When you mention average pension contributions or retirement planning in your next team meeting, watch the room carefully. You’ll see a split: younger employees glazing over whilst older colleagues lean forward with a sense of urgent interest. Same information, completely different reactions.
Here’s the thing that keeps me up at night as a reward consultant: we’ve got generous pension schemes and we know they’re important, but we’re failing to make them matter to everyone
The Communication Challenge
Average pension contributions data is everywhere, and retirement adverts are taking over daytime television, but sharing pension information with employees is going to take more than a simple organisation-wide email.
Your 25-year-old employee will interpret the same communications completely differently from the 55-year-old sat next to them.
According to the Pensions and Lifetime Savings Association (PLSA) research, only 18% of 18 to 34-year-olds feel confident about retirement planning.
And here’s the thing—it’s not because younger employees don’t care about their future. It’s because we’re explaining pensions like we’re talking to their parents.
Understanding the Generational Divide
- Gen Z (Born 1997-2012)
When you share information about average pension contributions or saving for the future with younger employees, they're often thinking: "How can I afford that when I'm already struggling to pay rent?"
They need to understand the benefits before they'll engage with anything else.
What works: Frame contributions as "free money from your employer" rather than focusing on industry averages and statistics.
- Millennials (Born 1981-1996)
This generation often approaches pension information with scepticism. They want to know if what they've got will actually lead to meaningful outcomes, given their financial pressures.
What works: Show them how small increases in contributions compound over time, using real examples rather than abstract figures.
- Gen X (Born 1965-1980)
They're suddenly interested in everything pension-related because retirement feels a bit too close for comfort. However, they often feel behind and need reassurance and support rather than data.
What works: Focus on catch-up opportunities and show them it's not too late to improve their position.
- Baby Boomers (Born 1946-1964)
This group engages readily with your communication efforts but may find modern pension schemes confusing compared to their earlier career experiences.
What works: Provide clear, detailed explanations with human support available.
Top Tips for Effective Pension Communications
- Stop Selling Retirement & Sell Relevance
Don't lead with "plan for your retirement." For a 25-year-old, retirement is 40 years away. Instead, provide context that resonates with your audience's current situation.
For example:
- For younger employees: "Add some free cash to the piggy bank of your future. £50 now might end up as £500 down the line…"
- For mid-career employees: "Playing catch-up? Good news—you've got time and earning power on your side. Even a 1% increase now could get you up to £25,000 more in retirement."
- For those approaching retirement: "Ready to turn your pension into an income? Three things to do this month: get your pension forecast, understand your options and book a one-to-one session with our pension specialist."
- Choose the Right Channels
The medium matters as much as the message. Sending pension information via post to Gen Z employees is like offering them a paper map when they've never lived without GPS.
For younger employees, think about:
- Interactive online pension calculators
- Short video explanations
- Social media posts with plenty of easy-to-understand graphics
For mid-career employees:
- Mobile-optimised content they can access easily
- Webinars they can attend during lunch breaks
- Downloadable guides to review in their own time
For those approaching retirement:
- Face-to-face sessions with pension specialists
- Detailed written materials and advice
- One-to-one guidance sessions
Communicating About Pensions: Mistakes to Avoid
1. Overwhelming Employees With Industry Data
Sharing tonnes of average pension contributions statistics from different sources confuses rather than clarifies. If it’s not relevant and helpful to the employee you’re targeting, don’t include it!
2. Fearmongering
Stop saying things like “You’ll really struggle in retirement if you don’t increase your pension contributions now”. This alienates younger employees who already feel financially pressured. (Plus, it’s often not true!)
3. One-Size-Fits-All Approaches
The same message delivered to everyone will resonate with almost no one.
Making Pension Information Actionable
The most effective communications include clear next steps and offer helpful support.
Advise all employees about:
- How to review their current contribution level
- Simple steps to increase contributions
- When changes take effect
- Who to contact for personalised advice
Age-specific actions:
- Younger employees: Start with minimum employer matching
- Mid-career employees: Consider annual increases aligned with pay rises
- Those approaching retirement: Explore maximum contribution limits and tax benefits
The Transparency Factor
Your pension scheme might be brilliant, but if your communications speak to only one generation, you’re failing the others. In today’s workplace, that’s not just a missed opportunity—it’s a retention risk.
The organisations succeeding in this area aren’t trying to make pensions exciting. They’re making contribution information accessible, relevant, and actionable for everyone, regardless of age or career stage.
Because when employees understand their pension options and feel supported in their decision-making, they’re more likely to engage with their benefits and stay with your organisation.
Ready to improve your pension communications? Join our Pay & Reward Academy for practical resources and expert guidance on engaging employees with their benefits and producing effective communications.