Nearly a third of British workers have left or are considering leaving their job due to dissatisfaction with their workplace pension, according to the results of a new study.
Figures from insurer Scottish Widows and research agency Opinium suggest that poor communication, low contributions and hard-to-access benefits are pushing employees to reconsider their future with their current employer. Among those who were dissatisfied, 68 percent blamed a lack of competitive pension provision. Others cited inadequate communication (26 percent) and benefits being difficult to access (21 percent).
The data is based on responses from 2,000 employees at UK businesses with 10 or more staff. Scottish Widows, part of Lloyds Banking Group, said the research revealed a growing expectation among workers for better long-term financial support from their employers.
Employers themselves are aware of the impact pensions can have. Among 1,000 senior decision makers surveyed, 91 percent said pension benefits are important for attracting and retaining staff. A further 88 percent believed their pension offer directly affects their company’s financial performance.
Poor engagement risks turnover and weak financial results
Graeme Bold, Managing Director of Workplace and Intermediary Wealth at Scottish Widows, said pension engagement should be an ongoing conversation between businesses and their staff, not a once-a-year topic. He said a current Pension Attention campaign had helped raise awareness but argued that firms need to maintain momentum throughout the year.
Pension engagement, Bold said, “is evergreen, so it’s important companies actively discuss their employees’ benefits package all year round. Technology has made this far simpler and it’s becoming increasingly easier to engage with your pension through an app”.
The report, Retirement Realities: Unlocking the Workplace Benefits, also found a strong link between pension engagement and wider business performance. Among firms that take an active role in educating staff about their pension, 64 percent reported “very good” financial performance. That figure dropped to just 18 percent among companies that do not promote pension awareness internally.
Contribution levels linked to performance
The report suggested that how much a company contributes to pensions is also linked to outcomes. Two in five firms (41 percent) that contribute more than 8 percent of an employee’s salary by default rated their financial performance as “very good.” This fell to just 19 percent among businesses reporting only “okay” performance.
In contrast, only 11 percent of high-performing firms said they provide the minimum 3 percent contribution required under automatic enrolment. Scottish Widows said this points to a clear business case for offering more than the statutory minimum.
“Workplace pensions are a powerful, yet often overlooked way to shape employees’ long-term financial wellbeing,” Bold said. “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.”
Non-pension benefits also play a role
While the report focused on pensions, it also examined the relationship between wider benefits packages and company performance. Firms offering more generous non-statutory entitlements tended to report stronger results.
More than half (51 percent) of companies offering enhanced healthcare support said they were seeing the best financial outcomes. The figure was 48 percent for extended maternity leave and 39 percent for paternity leave above the statutory minimum.
Scottish Widows said the findings support the case for employers to view benefits as a strategic investment rather than a cost. The report argued that stronger packages, especially those focused on long-term wellbeing, can play a key role in retaining talent and boosting productivity.
The surveys were conducted by Opinium between 11 July and 4 August 2025. The employer sample consisted of senior decision makers with responsibility for pension schemes at companies with 10 or more staff.
William Furney is a Managing Editor at Black and White Trading Ltd based in Kingston upon Hull, UK. He is a prolific author and contributor at Workplace Wellbeing Professional, with over 127 published posts covering HR, employee engagement, and workplace wellbeing topics. His writing focuses on contemporary employment issues including pension schemes, employee health, financial struggles affecting workers, and broader workplace trends.
- William Furney
- William Furney
- William Furney
- William Furney
