A tenth (10%) of employees may leave an organisation if their employers do not provide competitive pension benefits, according to research by Scottish Widows.
Its Retirement realities: unlocking the workplace benefits’ report, which surveyed 2,000 UK staff at organisations with 10 or more employees, also found that a further 19% that were dissatisfied said they would definitely consider leaving, while 39% may or may not consider leaving their job altogether.
Just over two-thirds (68%) of respondents who were dissatisfied with pension benefits said this was because they were uncompetitive compared with other employers. Other reasons included a lack of communication about these (26%), benefits being not easy to access (21%), and benefits being confusing (16%).
However, three-quarters (78%) of responsents said they were satisfied with their pension benefits. Satisfaction in relation to pension benefits also increased with organisation size, with 51% of employees at small, 56% at medium, and 59% at large organisations satisfied with their pension benefits.
More than 40% of those aged above 35 years have limited or no understanding of their employers’ pensions provision. Understanding of pensions was strongest among those aged 18-34 years, with two-thirds of this group having a full or moderate understanding of their employers’ pensions package.
More than 70% of small firms, and nearly 90% of medium and large firms, contribute more than the legal minimum to pensions and offer additional support and incentives, such as financial education sessions.
Half (51%) of large, 39% of medium and 34% of small organisations provide access to a financial advisor, while 38% of large, 34% of medium and 20% of small employers offer a salary sacrifice arrangement.
Susan Hope, retirement expert at Scottish Widows, said: “Pension benefits are no longer a ‘set and forget’ part of the reward package and employees are paying close attention to how their scheme stacks up against others. If benefits feel uncompetitive or unclear, people may vote with their feet, leaving employers on the back foot when it comes to retention. Regularly reviewing and communicating pension benefits is key to ensuring employees recognise their value and feel supported in planning for their future.”
