People’s Pension urges employers to engage young workers with pensions from first job

Employers should make pensions a meaningful part of onboarding to help young people develop stronger saving habits from the beginning of their careers, according to People’s Pension.

As students receive their A-level results and some prepare to enter the workplace, the pension provider has highlighted the role employers can play in demonstrating the value of starting retirement saving early.

Stuart Reid, distribution director at People’s Pension, said: “For many young people, A-level results day marks the beginning of a new chapter. For those starting work, that first payslip is an opportunity to begin building financial habits that could benefit them for decades.

“Retirement can understandably feel a very long way off when you’re 18, particularly when there are so many competing priorities for your first salary.

“But younger savers have something incredibly valuable on their side: time. Starting early means even relatively small contributions have longer to grow, while workplace pensions also benefit from employer contributions and tax relief.”

He added: “The challenge for employers is making that value feel relevant from day one. Our research shows younger people want clear, practical information that demonstrates why pension saving matters to them now, rather than something they only need to think about decades down the line.

“Employers can help by making pensions a meaningful part of onboarding and explaining how they contribute to the overall value of someone’s pay and benefits package.

“Helping young employees understand that the value of their pension goes beyond what they contribute themselves, through employer contributions and tax relief, can make the benefits of saving much more tangible.