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58% Of UK Employees Want Higher Pension Contributions From Their Employer

Boat
05/03/2022

Saving for retirement hasn’t always been a priority for employees, but data from the 2022 Drewberry™ Workplace Pension Survey suggests that times are changing.

Not only are more employees saving into their workplace pension, but additional pension contributions from employers are also now one of the most sought after employee benefits.

Employees Want Employers To Increase Pension Contributions Above Legal Minimum

When asked which mandatory benefits employees would like their employer to offer over the legal minimum, 58% of the 1,000 workers we surveyed said higher pension contributions.

This was higher than better sick pay (27%) and better maternity/paternity pay (22%), and only narrowly second to more holiday days (60%).

Additional Employer Pension Contributions One of Most Desirable Benefits

Even when listed amongst other discretionary benefits, 46% of respondents still ranked additional employer pension contributions in the top 3 most important employee benefits.

This is a 46% rate increase compared to when we last asked the same question in our 2021 Employee Benefits & Workplace Satisfaction Survey.

  • Flexible Hours (61%)
  • Work-from-home options (55%)
  • Additional employer pension contributions (41%)

Pension Provision Important Factor When Considering a New Employer

56% of respondents said that, when considering a new employer, the pension provisions they offered was an important factor.

No longer is it enough for employers to only offer a good base salary when recruiting top talent. Candidates are looking for companies that will invest in them, not only in the here and now but also in the future.

Additional Pension Contributions Just as Important for Employers as They Are for Employees

It is clear that employees see additional pension contributions from their employer as being very important. This is fantastic news, but what do employers stand to gain by increasing contributions?

The answer is plenty. Although initially it may seem like a cost that isn’t worth bearing, over time, offering employees contributions above the legal minimum can prove to be highly cost-effective.

It shows staff that they are valued and appreciated. This, in turn, can boost workplace morale, improve productivity and lower stress rates. It can also help to attract and retain top talent.

Need To Review Or Implement A New Workplace Pension?

Offering a good pension provision as part of a comprehensive employee benefits package is a great way to reward your employees’ hard work. However, like with any benefit, putting it in place can be a bit of a minefield.

At Drewberry, our team of friendly and experienced financial advisers can guide you through the complicated world of workplace pensions and recommend an appropriate solution for your business.

Don’t hesitate to get in touch for help and fee-free advice arranging employee benefits for your workforce. You can reach us on 02074425880 or email help@drewberry.co.uk.

martyn coates, employee benefits consultant at drewberry

Choosing and setting up a workplace pension scheme is neither a simple nor a quick task. But we can help to make it as painless as possible.

We are experts and taking the stress out of setting up a workplace pension scheme is one of our specialities.

Martyn Coates
Employee Benefits Expert at Drewberry

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Drewberry Ltd registered office: Telecom House, Preston Road, Brighton, England, BN1 6AF. Telephone 0208 432 7333

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