“Helping clients steer clear of a default fund not aligned with their circumstances could be part of this.”
Ms Jones states: "It’s not enough to just tell people and waggle your finger at everybody. You need to show them, which is why we crunched the numbers [as the tables above show].
"For someone who begins saving at age 35, they could lose out on the equivalent the Basic State Pension in annual retirement income if they opt out of all subsequent rises in contribution rates.
"And for 25 year olds, it is even more costly with a potential pension pot of nearly £650,000 and an annual income of £22,520 - a yearly salary that many people would be happy to have now."
Education is key, as Chase de Vere's Mr McSweeney confirms: "We need employers and advisers to continue to push member engagement through governance committees and structured financial education programmes.
"This will apply to those who select the default option and those who select their own fund options."
He says while Chase de Vere is seeking more proactive employers who do provide financial education to their workforce, this is still "the tip of the iceberg".
He adds: "In an environment where many individuals cannot afford to pay for good quality independent financial advice, the workplace should have an incredibly important role to play in ensuring individuals make sensible decisions with regard to their company pensions and their wider retirement planning."
simoney.kyriakou@ft.com
