There’s a pensions crisis coming. Employers can’t afford to wait any longer.
We’re not thinking enough about our pensions. According to the Department of Work and Pensions, 43% of working people are under-saving for retirement. The UK is drifting towards a crisis.
Pension Awareness Week (September 15th–19th) is the perfect time to take control – and avoid disaster. This article will look at why employers should take notice – and what you can do to support your employees.
The UK’s state pension is unsustainable
The UK state pension is predicted to increase by 4.7% in April 2026. That’s unlikely to change, but the government will make a final decision before the autumn budget on 26th November 2025.
That sounds like good news – and it is! But it can’t last forever.
What is the "Triple Lock"?
The state pension goes up every April.
The amount it goes up is decided by whichever of these numbers is the biggest:
- 2.5%
- The inflation rate from the previous September
- The increase in average earnings, recorded over the previous summer
The current UK government is committed to the “Triple Lock” until at least the end of this parliament. So the state pension will increase by at least 2.5% until 2029.
The state pension is paid for by working people. Those in work now, pay for the generations who came before them. When they leave work, the next generation pays for them, and so on.
The issue is we’re living longer, and having fewer children. For the first time, there are more elderly people in the UK than children.
Sooner or later, something has to give
It’s a maths problem. By 2070, government forecasts estimate the amount needed to fund the state pension will be 7.7% of GDP. That’s 50% higher than right now.
There are three possible solutions:
- Working people pay more towards pensions (higher taxes)
- Pensioners receive less money (smaller pensions)
- Or everyone stays in work longer (the pension age goes up)
In the meantime, employees can’t rely on the state pension alone. It’s up to individuals (and employers) to make sure they have enough money saved for a comfortable retirement.
But UK employees are not prepared
Many of us have buried our heads in the sand when it comes to retirement. A massive 74% of Brits in the UK and abroad don’t think they’re on track to retire with enough money to maintain their current lifestyle (Pensions Age).
But it’s easy to see why. Households are under tremendous pressure – retirement can feel a long way away.
Daniel Conti, Mintago’s Co-founder and COO understands why people aren’t engaging with their pensions.
“Too many people simply don’t have the time or money to prioritise retirement. Things like the cost of living, childcare and housing shortages are all putting pressure on household finances. Saving for the future often gets pushed to the bottom of the list.
“That’s understandable, but it means millions of people risk reaching retirement without the security they deserve. We need to make saving feel more manageable, more accessible and a lot more possible right now - not years down the line.”
The impact on business and personal finances will be profound
People are worried about retirement. They know they can’t rely on the state and they’re not sure if their workplace pension will be enough.
Those worries are starting to impact businesses too.
1 in 5 midlife employees say pension worries are negatively affecting their ability to work.
Employers are starting to wake up to this crisis. 30% of UK employers are predicted to increase pension spending in 2025 – an increase of 233%.
Employers should take action now
Chieu Cao, CEO at Mintago says now’s the time for employers to get involved and help their employees prepare for retirement.
“Pension Awareness Week is a great chance to help your employees get confident and clear about saving for retirement.
“Research has shown competitive pension schemes have a high impact on staff retention (See Me Hired). Helping your employees save for retirement isn’t just the right thing to do – it’s good for business too.”
If you haven’t implemented pension salary sacrifice yet, now’s the time to look into your options.
Pension salary sacrifice can save both employees and their employers money. Pension contributions are deducted from an employee’s salary before tax and National Insurance are calculated, helping employees boost their savings and reducing payroll costs for employers.
⚠️ More than 90% of employers think the UK government is likely to put restrictions on schemes like these in the Autumn Budget (IFA Magazine). Existing schemes could be grandfathered – so it may be worth signing up now, before it’s too late.
Chieu has this advice for business owners:
“Salary sacrifice is one of the most tax-efficient ways to boost pension savings, but there’s no guarantee it’ll be around forever. By implementing it now, businesses can try lock in the benefits for themselves and their employees.”
5 Activities for Pension Awareness Week
1. Encourage your employees to check their pension value
Many people don’t know how much they’ve saved so far, which makes it hard to know how much they need to save in future. Encourage your staff to log in to their pension portal so they can get a clear picture of where they stand.
2. Help your employees search for lost pots from previous employers
People move jobs much more often these days, so it’s common to have several small pension pots from different providers. We recommend using a service like Mintago’s Pension Search that automatically finds forgotten pots and brings them together in a single dashboard.
3. Review your workplace pension - and consider salary sacrifice
Take this opportunity to make sure your workplace pension scheme is competitive and delivering value for your employees. If you haven’t implemented a salary sacrifice pension yet, now’s the time to explore your options. Salary sacrifice can boost contributions and save both your employees and your business money via National Insurance.
4. Help your employees work out what they’ll need for retirement
Many of us underestimate how much money we’ll need later in life. We recommend sharing some simple calculators with your team to help them work out what they’ll need to support the lifestyles they want in retirement.
5. Recommend your employees take action to get on track
Awareness only goes so far. If your employees aren’t on track to retire comfortably, they should increase their pension contributions, consider consolidating smaller pots, or seek independent financial advice. The key message for your team is this: small steps today can make a big difference tomorrow.
Mintago makes saving for retirement easy
Mintago’s comprehensive platform gives your people everything they need to plan and save for a comfortable retirement.
- Pension Dashboard – for managing pensions
- Pension Search – for finding lost pots
- Salary sacrifice – for boosting contributions
- Free independent financial advice
Plus access to the largest selection of financial benefits
Speak to an expert to learn more about how Mintago can help your employees prepare for retirement.