More than half of UK workers (57%) say a workplace pension is very important when deciding whether to join a new organisation, according to research by workplace pension provider Penfold.
Its Retirement reality check report, which surveyed 2,000 UK employees and 500 small and medium-sized (SME) organisations, also found that respondents ranked a workplace pension above options such flexible working, bonus schemes, healthcare plans, gym memberships and work socials. Overall, 90% of employee respondents said their pension is important, along with flexible working (76%), salary advance schemes (65%) and bonus schemes (74%) cited as critical.
More than half (54%) of SMEs gave the same or higher priority to benefits such as travel assistance (59%), work socials (55%) or salary advance schemes (50%) than to workplace pensions.
Additionally, almost half (47%) of employee respondents said their pension contributions were set at the statutory minimum, and 53% would increase their contributions if their employer matched what they put in.
Overall, 95% of employee respondents said a contribution of 3%-4% is not enough to retain them. However, only 4% of employer respondents said they could not afford to contribute more than the minimum.
Chris Eastwood, chief executive officer and co-founder of Penfold, said: “There’s a clear gap between what employers think will attract people and what jobseekers actually care about. Perks can make a workplace more enjoyable, but when someone is choosing between job offers, they’re asking which employer is investing in their future.
“Economic pressure affects everyone. Housing costs, inflation, and wage stagnation mean people are thinking more seriously about their financial future, regardless of age. The pension is no longer background noise, it’s part of how employees judge whether an employer takes their wellbeing seriously. Security now matters more than novelty. Employers that recognise that shift will have a real advantage.”
