Business · News 61
Fewer than one in three working adults view employer pension contributions as a top priority when deciding on a new job offer, according to research from Which?. Just 31 per cent of respondents ranked employer pension payments among their top three workplace benefits when evaluating a job offer. This placed pension contributions behind paid sick pay (53 per cent), as well as flexible working hours and holiday allowance, which both stood at 45 per cent.
Despite this lower priority, a majority of workers (55 per cent) said they were still likely to give employer pension contributions some consideration when taking on a new role. The survey revealed a significant age gap. Nearly half (49 per cent) of individuals aged 55 to 64 rated the level of employer pension contributions as a top-three benefit, compared with just over one in 10 (11 per cent) Gen Z adults aged 18 to 24.
At the same time, almost half (46 per cent) of employees currently contributing to a defined contribution (DC) workplace pension did not know how much their employer was adding to their pot. Sam Richardson, Which ? Money editor, said: "Our latest research shows that workplace pensions are a massively neglected employee benefit, with almost half of workers we surveyed unsure how much their employer is currently contributing to their pot.
"Every extra pound that your employer chips in can really add up in the long run, but is often a chunk of salary that lots of us overlook. "Taking just five minutes to check what your workplace scheme entails, and whether your employer offers contribution matching, could really pay dividends in the long run. "Crucially, if you’re job hunting, seek out this information at the outset.
"We found people are more likely to consider annual leave entitlement than pensions when looking for a new job, but a more generous employer pension is effectively a silent pay rise." Get a free fractional share worth up to £100. Capital at risk. Terms and conditions apply.
Go to website ADVERTISEMENT Get a free fractional share worth up to £100. Capital at risk. Terms and conditions apply.
Go to website ADVERTISEMENT NS&I ‘has a real opportunity to set an example for the wider industry,’ said Sam Richardson, deputy editor of Which? Money (Dominic Lipinski/PA) (PA Archive) Under current automatic enrolment rules, a minimum total of 8 per cent of qualifying earnings must be paid into an employee's pension, including a minimum 3 per cent contribution from the employer. These payments also benefit from tax relief.
Industry experts often advise saving more than the statutory minimum, warning that relying solely on baseline contributions could leave workers facing a retirement shortfall. Individual circumstances differ, and some workers plan to draw on other assets alongside pensions to fund retirement, such as property, personal savings or inheritances. Staff and companies can pay in more than the required minimum, with many employers opting to offer higher amounts.
Several options exist to help people determine if their retirement savings are on track. Pensions UK updates its retirement living standards to provide a guide on how much money may be needed for different retirement lifestyles. Pension providers also supply digital tools and calculators to help individuals estimate their potential pot size, while the Government-backed Pension Wise service offers guidance for those approaching retirement.
When asked why they were unlikely to consider employer pensions, respondents most commonly stated that retirement felt a long way off. Which? highlighted that taking advantage of extra employer contributions and giving pension pots time to grow can significantly enhance ultimate retirement wealth. The survey gathered responses from more than 1,200 UK adults via Deltapoll in August.
Source: The Independent
