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Most workers ready to double pension savings, finds Penfold

53% of employees said they would increase their pension contributions if their employer matched the amount.

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Most workers ready to double pension savings, finds Penfold
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Workers are ready to double what they put into their pensions, but only one in seven employers are willing to match it, according to research from Penfold.

Over half (53%) of employees said they would increase their pension contributions if their employer matched the amount, based on Penfold’s “Retirement Reality Check” report. 

Only 14% of small and medium-sized enterprises (SMEs) offered matched contributions, even though supporting employees was a main reason for how SME leaders chose their approach. 

Nearly half (47%) of workers are paying only the legal minimum into their pensions, which means they are not on track for a comfortable retirement.

Chris Eastwood, CEO and co-founder at Penfold, said: “Employees are ready and willing to save more for their future; employers just aren’t meeting them halfway. 

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“The ambitions to save are there, but employees can’t do it alone. Similarly, employers are missing opportunities when it comes to supporting their staff with the benefits they currently offer across their workplace.

“Pension contributions are underestimated in terms of how much they matter to employees.”

Eastwood added: “Our findings show that 90% of employees already say their pension influences whether they stay in a role. 

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“Yet while businesses routinely invest in other benefits, only 4% say they genuinely can’t afford to contribute more than the minimum. 

“Addressing pension awareness can help employers capitalise on an overlooked opportunity.”

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He said: “Employer matching is one of the simplest, most impactful changes UK businesses can make. 

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“Financial security is a top priority for people across the country in today’s current climate. Employers that step up by offering matching contributions aren’t just helping people build a better retirement, but also strengthening morale, boosting retention and signalling that they care about their team’s long-term wellbeing.

“With 95% of employees saying the typical 3-4% employer contribution isn’t enough to keep them, the message is unambiguous: doing the minimum is no longer good enough. Sticking to bare minimum contributions risks losing talent.”

He added: “Most small businesses simply haven’t revisited their pension decision in years or haven’t connected their contribution strategy to retention.”

“With only 1 in 7 SMEs matching contributions, businesses nationwide are missing a clear opportunity to boost retention and long-term financial resilience for employees at minimal additional costs for themselves.”

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