Pension engagement and profitability go hand in hand, say UK firms

Businesses that help employees take an active role in their pensions are also seeing stronger financial results, according to research from Scottish Widows.

The Retirement Realities: Unlocking The Workplace Benefits report, produced with research agency Opinium, surveyed 1,000 senior decision-makers and 2,000 employees across the UK.

It found that two-thirds (64%) of companies that actively educate staff on pensions reported “very good” financial performance – compared with just 18% among those that do not.

The data suggested a clear link between financial outcomes and employer generosity.

Among firms contributing over 8% of an employee’s salary to pensions, 41% described their performance as “very good”, compared with only 19% of those performing “okay”.

Just 11% of top-performing firms offer the minimum 3% contribution required by law.

Graeme Bold, managing director, workplace and intermediary wealth at Scottish Widows, said: “Workplace pensions are a powerful, yet often overlooked way to shape employees’ long-term financial wellbeing.

“Our data shows that by investing in pension engagement, employers are not only supporting their employees’ future, but also unlocking stronger financial performance today. This helps to set the foundations for an engaged and productive workforce, which attracts and retains top talent.”