Employers should be legally required to disclose their pension contributions in job advertisements, according to a report by think tank Social Market Foundation (SMF). The report argues that this measure would improve retirement incomes, promote fair competition in the labour market and boost trust in business.
The SMF report recommends that the government amend the Pension Schemes Bill currently progressing through Parliament to include a duty for employers to state pension contribution rates in all job adverts.
The proposal seeks to raise awareness of pension savings and encourage greater scrutiny of employer contributions, at a time when concerns about inadequate retirement savings continue to grow. The report highlights that 12.5 million working-age adults in the UK are not saving enough to achieve even a basic standard of retirement income.
Around four million people are expected to fall short of the minimum retirement standard, which includes no access to a car, limited spending on groceries and only one holiday within the UK each year.
Pension contributions largely hidden from workers
Despite growing concerns over under-saving, pensions rarely feature in political discussions or campaign priorities. The SMF report suggests this is partly because many workers are unaware of how much they or their employers are contributing.
The report proposes mandatory disclosure of employer pension contributions in job adverts as a way to help workers see pensions as part of their overall pay package. This, it says, would also create competitive pressure for employers to improve their contributions.
James Kirkup, SMF Senior Fellow and author of the report, said, “Too many people are heading for retirement without enough savings – and most of them don’t even know it. That’s partly because we’ve allowed pensions to become invisible.
“Making employers state their pension contributions in job ads would help workers make better choices, create more pressure for higher contributions, and support fairer labour market competition.”
Transparency as a tool for corporate responsibility
The report also found that clearer information about pensions could become a valuable metric for investors and policymakers focused on corporate responsibility. The SMF points to growing debate around the social aspect of ESG (Environmental, Social and Governance) investing, suggesting that pension transparency offers a practical and credible way to assess how businesses treat their staff.
Polling evidence from Ipsos and YouGov cited in the report shows that pay and benefits remain key drivers of public trust in companies. The SMF argues that companies offering better-than-minimum pension terms should be encouraged to publicise this, giving them an advantage in recruitment and reputational standing.
Kirkup added, “This proposal isn’t just good for workers’ futures – it’s good for the reputation of business. Being seen to treat your staff well, including through decent pension contributions, is something the public values and supports. That’s something all political parties and responsible employers should pay attention to.”
The report calls for policymakers to act swiftly, suggesting that the Pension Schemes Bill offers an immediate opportunity to introduce this reform. The SMF also calls on businesses to adopt voluntary disclosure of pension contributions as a signal of good employment practice, even ahead of any legal mandate.
