Companies that offer generous pension arrangements may discover that they develop a competitive edge when it comes to recruitment, an expert has said.

According to Mark Brooks, a spokesperson for the National Association of Pension Funds (NAPF), as the importance of having a pension in place becomes more evident, many workers are attracted to firms that offer such a provision.

He made reference to research conducted earlier this year by the NAPF which showed that 49 per cent of employees questioned who worked for a firm with no workplace pension would have additional loyalty towards their employer if it began offering the benefit.

The research also discovered that 39 per cent of staff reported being more loyal because the organisation they work for does offer a pension.

Formed in 1923, the NAPF is a body that represents and provides services for those involved in the designing and running of pension schemes, as well as those who provide advice or who invest in them.