Around 1.5 million employees are unaware of their pension fund choices or have never reviewed their investments, according to research by Aviva.

The survey of 4,021 employees and analysis of data from the Office for National Statistics found that 19% of employees in small businesses are not aware of their pension choices.

15% of employees paying into a defined contribution pension scheme don’t know their funding choices or review them, compared to 9% in 2013 when auto-enrolment was introduced.

Fewer employees are also seeking financial advice with 4% admitting they do so, compared to 7% in 2013.

Financial constraints are the most common factor for employees to opt-out of workplace pension schemes:

• 13% of employees feel that it is too late to start saving
• 19% would rather use cash to fund their lifestyle and retirement
• 20% do not feel their employer has explained auto-enrolment in a way they could understand.

Andy Curran, managing director, corporate & business solutions at Aviva, said:

“It is vital employees engage with the processes behind their pension. We must continue to make every effort to ensure people have all the support they need to make the most of their pension provision.”