More than half of UK workers (57%) say a workplace pension is very important when deciding whether to join a new company – ranking it above flexible working, bonus schemes, healthcare plans and lifestyle perks such as gym memberships or work socials.
The findings come from new research by UK workplace pension provider Penfold, based on surveys of 2,000 UK employees and 500 small and medium-sized businesses.
The ‘Retirement reality check’ report highlights a growing shift towards long-term financial wellbeing as economic pressures continue to shape how people evaluate job opportunities
While traditional perks remain appealing, employees are increasingly focused on benefits that offer future security. A strong workplace pension now plays a more central role in how workers judge whether an employer is investing in their wellbeing.
Despite this shift, many employers appear out of step with employee priorities. Over half of SMEs (54%) say they give the same or higher priority to benefits such as travel assistance (59%), work socials (55%) or salary advance schemes (50%) than to workplace pensions.
Chris Eastwood, CEO and co-founder of Penfold, said: “There’s a clear gap between what employers think will attract people and what jobseekers actually care about. Perks can make a workplace more enjoyable, but when someone is choosing between job offers, they’re asking which employer is investing in their future.”
The research also challenges assumptions about age and pensions. Younger employees showed similar levels of interest in pension quality as older workers when evaluating job opportunities, suggesting long-term financial security is a concern across all career stages.
Eastwood continued: “Economic pressure affects everyone. Housing costs, inflation and wage stagnation mean people are thinking more seriously about their financial future, regardless of age. The pension is no longer background noise; it’s part of how employees judge whether an employer takes their wellbeing seriously.”
With competition for talent still high, the findings suggest employers who treat pensions as a core part of their reward offering, rather than a background compliance requirement, may be better placed to attract and retain staff.
