Employees miss out on an average of £1,272 every year because they fail to join company pension schemes, Standard Life says.
Of those employees currently members of their occupational pension scheme, 22% do not take up the maximum employer contribution matching level available. This could cost them £790 per year in missed contributions, Standard Life warns.
"Our research shows a huge number of people miss out on this ‘free money' and as a result lose a significant contribution to their retirement fund," says John Lawson, head of pensions policy at Standard Life.
"Auto enrolment to corporate pension schemes, being introduced in 2012, will help overcome this issue.
"However, our findings are a clear call to action to improve communication around the benefits offered to employees. More needs to be done to equip people with the knowledge to make informed choices about how to save."
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