Nearly 40% of employers offer four or fewer types of financial support and have no plans to increase this, despite 61% of employees saying better support would make them more likely to stay with an organisation, according to research by pensions and financial services firm Hymans Robertson.
Its Employee benefits 2026: trends and employer priorities report, which surveyed 500 UK corporate finance and pensions decision-makers, also found that while employers are investing in financial wellbeing, most focus on low-cost options such as discounts and webinars. However, employees revealed that they actually want deeper, personalised support, guidance, advice and emergency savings help.
In terms of pension contributions, 84% of employer respondents set employee defaults at 3%–5%, and two-thirds have a default total saving at 10% or less. Three-quarters (75%) provide matching or incentive-based contributions, while 25% offer a flat or non-contributory rate.
A quarter (27%) share some or all of their national insurance (NI) savings from their salary sacrifice scheme with employees, with just 7% fully sharing NI savings.
Private medical insurance remains popular, with only 9% of employers not offering this. However, 34% restrict staff eligibility by their grade.
Group income protection is also widely offered, but design choices shape how well it supports staff. Almost 90% offer group life assurance, yet few allow spousal cover or adjustable levels.
Hannah English, head of DC corporate consulting at Hymans Robertson, said: “The pace of change in pensions and benefits in 2025 has been rapid. Rising costs, and growing expectations around fairness, mean employers are under pressure to rethink their benefits strategy. Our research shows that while many employers are taking steps in the right direction, the environment they operate in has become far more demanding.
“The gap between what employers offer and what employees say they value is one of the biggest risks for retention but is also one of the biggest opportunities. Small well-targeted changes in benefit structure, a rethink on eligibility rules or even a clearer communication strategy can make a real difference. Budget pressures are real and aren’t going away, but fairness and financial resilience can still be improved with thoughtful action.”
