Many UK workers may be missing out on potential pension growth due to a lack of awareness regarding their employer's contributions. A survey conducted in August 2026 found that 46% of individuals paying into a defined contribution workplace pension did not know the amount their employer contributed.
While employers are legally required to contribute at least 3% of qualifying earnings, some offer significantly more. These additional contributions are described as a 'hidden pay rise' that could add thousands to a pension pot annually.
The survey also revealed that employer pension contributions are not a top priority for many job seekers. Only 31% of working adults considered the level of employer pension contributions to be one of their three most important benefits when considering a job offer, ranking behind paid sick pay, flexible working hours, and holiday allowance.
Pension provision varies across industries and earnings brackets. In 2024, 46% of savers in the highest earnings quartile received at least 6% of gross pay, compared to 22% in the lowest quartile. Industries such as finance and insurance see only 5% of savers receiving the statutory minimum, while 52% in accommodation and food services receive the minimum.
The Pensions Commission is currently reviewing rules around automatic enrolment amid concerns that many individuals are not saving enough for retirement.