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Workplace retirement saving initiatives are crucial for engaging people in pension provision, according to research company Defaqto.

Matt Ward, principal consultant for pensions and wealth management for Defaqto applauded the announcement by Mike O'Brien, secretary of state for pensions, that the 26 pension education projects aimed at UK employers is to be extended to March 2009 and the pension education fund plumped up to £1.47m.

The workplace-based projects have been running since January 2006 and have reached 100,000 people. Mr Ward pointed to Defaqto research last year which showed that 24 per cent of consumers trusted their employer to advise them on retirement planning.

He said: "The role of the employer in the education of their staff on pension planning matters should not be underestimated. Employers are a unique touch-point in the lifetime of employees and are therefore in a position to provide educational and planning support to the employee on both retirement savings and income matters."

The government projects use presentations, workshops and one-to-one retirement planning consultations to engage employees.

Mr O'Brien said: "The scheme is a useful way to give people the information they need to make decisions about their futures. The workplace is an ideal place to do this; often someone's first contact with pensions is through their employer's scheme and research shows that workers trust their employers to provide accurate information about their pensions.

"The onus is on government and the financial services industry to acknowledge the importance of the workplace in future pensions provision and continue to find ways to engage consumers through this channel."