22/04/2026

7 mins

Workplace Pensions represent one of the most significant long-term commitments an employer makes to its workforce. Yet despite their importance, our 2026 Employee Benefits Benchmarking Report¹ found over 1 in 5 employers admit they have no formal pension governance in place.

When managed well, employers can turn a mandatory benefit into a powerful tool for employee engagement. But when not governed efficiently, they can present a real risk – a risk few businesses can afford to take.

ABOUT OUR RESEARCH 📚
Our 2026 Employee Benefits Benchmarking Report is based on a survey of 626 HR and finance professionals conducted in February 2026 via online survey. The sample includes UK employers of all sizes across a number of different sectors. Findings are indicative of trends among the survey population and may not be representative of all UK employers. Where year-on-year comparisons are made, these reflect changes in the survey population between years, which may differ in composition.

Going Beyond Auto-Enrolment Compliance in 2026

In place for almost a decade, auto-enrolment forced employers to take action. Most now have a Workplace Pension scheme in place, payroll aligned, and minimum contributions covered.

But governance is what happens next. It’s the difference between a scheme that simply exists, and a scheme that is actively managed, reviewed, and aligned to business and workforce needs.

Encouragingly, many employers are taking steps in the right direction. Regular engagement with pension advisers is now the most common approach to governance. However, the data shows this is far from consistent and in many cases, not structured.

When it comes to reviewing Workplace Pension schemes, employers are taking quite varied approaches. 35.9% review annually, 32.9% do so at least twice a year, while 21.4% review less often than annually or never

One in five have no formal governance in place for their scheme, and many more appear to be taking a relatively light-touch approach to pension oversight, despite employees placing growing value on pension quality, communication and employer contribution.

Don’t Risk a “Set and Forget” Workplace Pension

For employers without any form of governance for their Workplace Pension, the biggest issue is complacency rather than compliance, which creates hidden risks:

Outdated investment strategies that no longer reflect workforce demographics
Uncompetitive contribution structures that fall behind market expectations
Unmonitored charges that erode employee outcomes over time.

At a time when enhanced pension contributions are among the most valued benefits (according to separate employee research²), this presented a missed opportunity to improve employee engagement and perceived value of their pension.

Regular check-ins with pension specialists or forming a governance committee can help you stay ahead of changes, and ensure your scheme is delivering the best outcomes for your employees. Taking these steps will not only protect your business but also demonstrate your commitment to supporting your workforce’s financial future.

Effective Workplace Pension governance is about delivering real value to your people – through transparent costs, clear communication, and robust support – all while meeting your employer obligations.

Bernadette Briggenshaw
Client Delivery Director

Making Governance Part of Your Employer Brand

Well-governed Workplace Pension schemes can actually turn an obligation into an advantage for your business. It clearly demonstrates that your business is actively supporting employees’ financial futures, rather than merely meeting minimum requirements.

With financial wellbeing high on employee priority lists, pension quality is increasingly influencing recruitment decisions. Separate employee research³ found that 84% of jobseekers consider pension provision an important factor when choosing an employer.

Governance allows you to confidently assess whether the investment strategy aligns with workforce demographics (e.g. younger workforces may require different default fund approaches than older populations nearing retirement).

Getting The Most From Your Budget

Governance also affects whether employers are making the most of the scheme they already have. Most employers are offering 5% which is above statutory, but are you missing an opportunity to add more – without increasing costs?

Where oversight is limited, opportunities such as Salary Exchange can be missed – an opportunity to improve tax efficiency for both employer and employee. Nearly two thirds of employees say they would prefer higher pension contributions over other benefits³, and 60% want their employer to pay more into their pension³.

That matters at a time when many employees say they want more support and value from their pension, and when businesses are under pressure to make benefits budgets work harder. Even a modest 1% uplift⁴ in employer contributions can have a meaningful long-term impact on retirement outcomes.

By reviewing your scheme regularly, communicating clearly, and making complex options easier to understand, you can turn a compliance requirement into a benefit your employees truly value – while supporting long-term financial wellbeing.

Adam Gibbs
Senior Workplace Pensions Specialist

Get Specialist Support With Your Workplace Pension Scheme

Workplace Pensions are technically complex. Legislation evolves, tax rules change and investment markets fluctuate. For many HR and Finance teams, pensions are one responsibility among many.

Engaging a specialist employee benefits consultant can provide clarity and independence. Independent reviews can assess competitiveness, compliance, fund performance and cost efficiency. In some cases, savings can be identified through charge renegotiation or structural changes such as Salary Exchange.

Need help keeping your Workplace Pension compliant and impactful? We not only help UK businesses design competitive schemes, but also deliver them in ways employees understand and engage with. From benchmarking to ongoing communications support, we ensure your benefits are known, used, and appreciated. Call us on 02074425880 or submit an enquiry to talk through your options.

Why Speak to Us?

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:

Award-winning independent employee benefits consultants, working with leading UK insurers and benefit providers
Assigned specialist on hand to help – every step of the way
4119 and growing independent client reviews rating us at 4.92 / 5
Authorised and regulated by the Financial Conduct Authority. Find us on the financial services register
Claims support when you need it most.