Employers should be required to share pension contributions in job ads, think tank says

The SMF argued that the Government should amend the Pension Schemes Bill currently before Parliament to introduce mandatory disclosure of employer pension contributions on all job adverts.
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The Social Market Foundation has called for a new legal duty on employers to disclose pension contribution rates in job advertisements – in a bid to improve retirement incomes, boost labour market fairness, and enhance public trust in business.

In a new report published today, the SMF argued that the Government should amend the Pension Schemes Bill currently before Parliament to introduce mandatory disclosure of employer pension contributions on all job adverts.

The proposal is designed to raise public awareness of pensions and stimulate demand for better employer contributions, amid mounting concerns about widespread under-saving for retirement.

According to Government figures, 12.5 million working-age adults are not saving enough to meet even basic thresholds for adequate retirement income.

Around four million people are set to fall short of the “minimum retirement standard” – meaning a retirement without a car, limited grocery spending, and a single UK holiday each year.

Despite these warnings, policymakers have taken little action – in part, the report argued, because there is little political pressure to act.

Voters rarely raise pensions with MPs, and most workers remain unaware of how little they are saving or receiving from employers.

The SMF report proposes making pension contributions visible in job ads to help workers treat pensions as a form of pay – and to encourage employers who offer better-than-minimum pension terms to highlight them as a recruitment asset.

The report also argued that the visibility of pension contributions could become a valuable new indicator for investors and policymakers concerned about corporate responsibility.

Polling evidence from Ipsos and YouGov showed that the treatment of staff – including pay and benefits – is a key driver of public trust in companies.

The SMF argued that businesses offering generous pension terms have an opportunity to improve their reputations through transparency.

James Kirkup, SMF senior fellow and author of the report, said: “Too many people are heading for retirement without enough savings – and most of them don’t even know it. That’s partly because we’ve allowed pensions to become invisible.

“Making employers state their pension contributions in job ads would help workers make better choices, create more pressure for higher contributions, and support fairer labour market competition.”

“This proposal isn’t just good for workers’ futures – it’s good for the reputation of business. Being seen to treat your staff well, including through decent pension contributions, is something the public values and supports. That’s something all political parties and responsible employers should pay attention to.”

Jessica O'Connor

Jessica O'Connor is a Reporter at Workplace Journal

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