L&G tests mandatory workplace pension education

Legal & General  has launched a pilot to test whether requiring employees to complete pension education during the working day leads to greater engagement with retirement savings than offering the same support voluntarily.

The Building Future You pilot involves a sample of L&G employees split into two groups. Both will receive short video modules and a digital quiz designed to identify pension priorities and practical next steps. Half will be required to complete the learning as workplace training, while the other half will have voluntary access.

L&G will compare whether participants check pension balances, review contributions and use retirement planning tools. The findings will inform its future employer support and wider policy discussions.

The pilot follows research showing that 41% of people aged 40–54 with a defined contribution workplace pension had not interacted with it in the past year, while 25% could not estimate how much they had saved.

Employees who sought pension advice from their employer reported more activity: 21% increased their contributions in the past year, compared with 11% of those who did not. However, only 16% of employers provide information or guidance on preparing for retirement, according to Department for Work & Pensions research.

The pilot forms part of L&G’s Decades Ahead initiative focused on long-term financial security.