Selecting a Workplace Pension is a major decision for any employer. The right scheme can save your business time and money while helping your people build better retirement savings.
A poor choice, however, can mean unnecessary admin costs and weaker outcomes for your team. In this guide, we explain what to consider when choosing a scheme, compare leading UK pension providers, and share specialist insight from our consultants.
76% of UK employees are relying on their Workplace Pension to fund their retirement, so it’s never been more important to choose the best possible scheme for your people.
Here’s an at-a-glance comparison of the leading providers’ Workplace Pension schemes, comparing things such as annual management charge (AMC), tax relief methods, and ethical funds options.
| Provider | Best for |
|---|---|
| Aegon | Flexibility and fund choice |
| Aviva | Large firms, broad fund choice, strong ESG |
| Nest | SMEs, ease of use, government-backed |
| Now:Pensions | Simplicity, small business focus |
| The People’s Pension | Low-cost SME option |
| Royal London | Mutual provider, customer service |
| Scottish Widows | Established brand, mid-large firms |
There’s plenty to consider when choosing a Workplace Pension. Some schemes might appear best at a glance, but might not be suitable for your employees or industry. It’s essential to figure out what your team and your business really needs before committing to a provider.
Here are some of the key factors to consider when choosing a Workplace Pension:
Since 2012, all UK employers must provide an eligible auto-enrolment pension. Check your chosen scheme accepts your full employee profile and is FCA-approved or independently reviewed.
Your payroll software should also communicate seamlessly with your pension provider to manage contributions and enrolments automatically. Compatibility saves both admin time and errors.
The different tax relief methods for Group Pensions can get confusing. Schemes can be set up in various ways, all of which are taxed differently. The right provider will offer a tax relief method that’s suitable for your business.
Contributions are taken after tax, and providers reclaim 20% from HMRC.
Example: £80 from pay + £20 tax relief = £100 into pension.
Contributions are taken before tax, giving higher earners immediate tax relief.
Employees earning below £12,570 receive no relief via this method.
Also known as Salary Exchange, contributions are made from gross pay before tax and NI, reducing overall liability. It can be structured as Simple (higher take-home pay) or SMART (higher pension contribution).
52% of employees told us they want to learn more about the tax-saving benefits of Salary Exchange Workplace Pensions. When set up correctly, it can make a meaningful difference to employee savings.
Adam Gibbs
Senior Pensions Specialist, Employee Benefits
Corporate Pension providers have fees and charges for setting up and running a scheme. The best Workplace Pension for your company will align with your budget and the needs of your people.
Employee Fees
It’s not just a case of setting up a scheme and being done with it. Running a pension involves ongoing governance and communication.
You can choose to:
We help businesses of all shapes and sizes to set up, manage, and get the most from their Workplace Pension scheme. Give us a call on 02074425880, email help@drewberry.co.uk, or submit an enquiry to speak to one of our consultants.
Pension providers are assessed by three credit rating agencies: Fitch, Standard & Poor (S & P), and Moody’s. Ratings depend on which investments will not default and produce a solid return.
Fitch and S & P use a letter system to rank providers. Moody’s rate using letters and numbers. These ratings are as follows:
| Fitch, S&P | Moody’s | |
|---|---|---|
| AAA | Companies of exceptionally high quality | Aaa / Aa1 / Aa2 / Aa3 / A1 / A2 / A3 / Baa1 / Baa2 / Baa3 |
| AA | Still high quality with a low default risk | |
| A | Low default risk, slightly more vulnerable to business or economic factors | |
| BBB | A low expectation of default, business or economic factors could negatively impact the company | |
Note: Note: These can have a plus or minus alongside the letter grade.
| Fitch, S&P | |
|---|---|
| BB | Elevated vulnerability to default risk and more susceptible to adverse shifts. Still financially flexible |
| B | Degrading financial situation, highly speculative |
| CCC | A real possibility of default |
| CC | Default is a strong probability |
| C | Default or default-like process has begun |
| RD | Issuer has defaulted on a payment |
| D | Defaulted |
When you compare Group Pension providers, providers with A grades are more likely to pay out. However, while these ratings are a good indicator of financial strength, it’s not perfect, as one provider could have different ratings from agency to agency.
The majority of employees (70%) say it’s important that their pension contributions get invested ethically. With this in mind, the best Workplace Pensions offer:
Ethical and ESG funds can also support your organisation’s sustainability goals or B Corp commitments.
Workplace pensions with a variety of funds give staff flexibility over their investments. A diverse investment portfolio can help them save for retirement in a way that suits them.
When an employee is first enrolled into the Company Pension, they’re enrolled into the default fund – regardless of their age or appetite for risk. For this reason, default funds tend to be index-linked and have low to medium investment risk. They’re designed to be a good fit for the majority of people who don’t want to manage their pension investments.
Most default funds are “lifestyle strategies”, designed to follow the employee’s journey to retirement, ensuring investment risk is reduced as retirement nears. It aims to protect the value of the pension.
Most providers will offer “lifestyle” or “target date” options. But there are many different areas of investment. Some are more generic to suit all needs, while others are more specialist.
Some staff members may want to invest ethically, so an ethical fund is necessary. Most providers have at least one ethical fund available. Another type to consider is Sharia funds for any employees who are muslim and practise Islam. Sharia-compliant options invest according to Islamic law.
The best Workplace pension providers have a range of funds for staff to pick from. Offering a scheme with a variety of investment options including ethical funds can be beneficial for your own ESG policy or B Corp status.
The UK has a few major pension providers to choose from, each with their own unique structure and setup.
The “best” provider for your business won’t necessarily be the best for another, as it all depends on your specific needs and circumstances. That’s why it’s important to carefully compare schemes.
Our list of “top” providers has been put together by considering product offering, longevity, and customer reviews.
Comprehensive platform for choice and scale
Aegon UK offers a highly flexible Workplace Pension platform geared to employers who value choice and adviser support.
It’s picked up industry awards for its “Mylo” digital service, reinforcing its emphasis on innovation.
Aegon stands out for its flexibility and breadth of investment options, with over 4,500 funds including extensive ethical and ESG offerings. Its platform caters to employers who want choice and adviser support, and its award-winning “Mylo” digital service enhances member engagement.
For employers with medium-to-large schemes, Aegon’s extensive fund range, combined with scalable administration tools and strong adviser support, makes it a highly adaptable option.
While cost structures vary by employer, its transparency and platform capabilities allow HR teams to deliver a tailored pension experience aligned with both employee needs and corporate ESG goals.
Large fund range and strong ESG credentials
Aviva is one of the best-known names in UK pensions, offering a full-service Workplace Pension proposition that spans master trust and contract-based arrangements. In 2025 it earned gold ratings across its Workplace ARC, Designer and My Money trust offers.
Its “My Future Vision” default strategy now incorporates a 15-year glidepath and private markets exposure.
Aviva is ideal for employers looking for a comprehensive, flexible Workplace Pension solution. It offers an extensive range of investment funds, including stewardship-led and sustainable options, alongside a well-regarded default lifestyle fund, “My Future Vision.”
Its platform supports both master trust and contract-based arrangements, enabling large organisations to scale effortlessly while meeting auto-enrolment requirements. Aviva also provides strong digital tools for both employers and employees, including payroll integration, reporting dashboards, and online portals, which reduce administrative burden.
For HR teams prioritising ESG credentials and robust fund selection, Aviva offers one of the most mature, award-winning pension propositions in the UK.
Simple, cost-effective choice for SMEs
Nest is the UK’s largest Workplace Pension master trust by membership, managing more than 500,000 employers as of 2025.
Nest’s offering is designed with simplicity and scale in mind, making it an appealing option for smaller employers or those seeking a low-maintenance default solution.
Its commitment to climate-aware investing and growing UK asset allocation underline its evolving investment strategy.
Streamlined auto-enrolment solution
Now:Pensions was originally set up by ATP of Denmark for employers requiring a scheme to fulfil their automatic enrolment. It’s a streamlined master trust designed particularly with small- to medium-sized employers in mind.
The scheme is notable for its simplicity and competitive charging structure. As a provider focused on easier setup and straightforward administration, it may be especially suitable for HR teams seeking minimal friction in implementation and ongoing management.
Low-cost option for small employers
The People’s Pension is run by People’s Partnership, a not-for-profit organisation. Founded in 1942, it started with a holiday savings scheme for the construction industry, and went on to deliver products that were simple to implement, beneficial for workers, and hassle-free for employers.
The People’s Pension is recognised as the UK’s largest independent commercial master trust scheme, serving over 7 million members across some 100,000+ employers.
Its not-for-profit model (profits reinvested for members) and awards for responsible investment stewardship make it an appealing choice for employers looking to deliver value and sustainability in their pension proposition.
Mutual provider with strong service reputation
Royal London began as a friendly society in 1861, later changing to a mutual society in 1908. Over the years it has become the UK’s largest mutual life, pensions and investment company.
Royal London is committed to providing the very best experience and prides itself on delivering standout service and support.
Royal London is a mutually owned provider (i.e., no external shareholders) and in recent years has focused on enhancing its Workplace Pensions offering.
The mutual structure may appeal to employers wanting a provider that shares profits with members and emphasises customer-led service.
Trusted brand and solid online tools
Scottish Widows, part of the Lloyds Banking Group, is a major player in UK defined-contribution workplace pensions. Originally set up in 1815 to protect women who’d lost their husbands, fathers, and brothers in the Napoleonic War – it now supports its customers in making the most of their financial future.
Scottish Widows has made a strong push on its digital capability (one million+ digitally registered users) and is now ranked second by size in the UK DC provider market.
For mid to large-sized businesses, Scottish Widows offers scale, recognised brand and a wide fund choice.
Enquire about a Scottish Widows scheme
Communication is key when it comes to Workplace Pensions. You’re legally obliged to provide certain information, but the trick is to go one step further.
Our 2025 Workplace Pensions Survey found 72% of employees want their employer to provide more education, with areas of most interest being financial planning, practical pension steps, and Salary Exchange methods.
More findings to cement communication as a core part of pension success:
| The Data 📊 | The Takeaway 🤔 |
|---|---|
| 56% of employees aren’t taking advantage of Salary Exchange, even though 52% want to learn about it | Education around the tangible tax-saving benefits can boost engagement with your pension scheme |
| 60% of employees say their employer should pay more into their pension, yet nearly half (47%) don’t know the exact percentage their employer contributes | Clearly communicating your contributions can influence employee satisfaction |
| Only 33% fully understand how their current pension scheme works, and 17% don’t even know which provider their pension is with | Explanation of scheme mechanics could improve participation and confidence |
| 38% don’t understand the tax relief associated with a Workplace Pension | Educating employees on tax benefits could increase participation and boost savings |
| The majority of employees rely on their Workplace Pension as their main post-work income, yet 68% don’t believe it will be enough for a comfortable retirement | Employees are seeking guidance on retirement planning and long-term savings |
Many pension scheme providers have various different tools and documentation such as pension calculators, and factsheets which can support your own communications and ensure staff have the right information.
And if you work with a specialist consultant (like us at Drewberry), we can help tailor a pension communication plan, allowing your team to get the most out of your scheme. Give us a call on 02074425880 or email help@drewberry.co.uk to talk through your options.
A good Workplace Pension scheme should typically include the following:
In terms of global accessibility to all employers, Aviva is one of the biggest providers in the UK, providing services to over 33 million customers worldwide.
Due to the nature of investing, it isn’t possible to confirm how much an employee’s pension savings will be worth when it’s time to retire. The value of a pension pot will depend on factors including:
Each employee can choose their own investments which will determine the return on their contributions.
If you’d like more help with choosing the best Workplace Pension for you, don’t hesitate to get in touch with us. Our pension specialists can help you find the best Workplace Pension scheme for your company. We’ll do the heavy lifting, allowing you to run your business without the additional stress.
To ensure your employees get the most out from their pension, you can call us on 02074425880 or email at help@drewberry.co.uk.
Employee benefits can be a headache. But our specialists do this day-in, day-out, offering first class service when you need it most. Here’s why you should talk to us:
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