Employees say larger employer pension contributions are the single most important benefit they want to see added to their reward packages in 2026, according to new research into changing workplace priorities.
Almost one third of workers placed increased pension contributions at the top of their list of desired perks, signalling a clear demand for greater long-term financial support from employers at a time of rising living costs.
The study, carried out by Epassi UK, a digital employee benefits platform, surveyed 2,000 adults across the country to understand which benefits matter most to staff in the year ahead.
Pensions emerge as clear priority
Thirty one percent of employees said higher pension contributions were the most important addition they wanted from their employer. The same proportion ranked unlimited paid time off as their top choice, putting the two benefits in joint first place.
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Among older workers, the appetite for pension support was even stronger. Four in ten employees aged 55 and over said increased employer contributions were their leading priority as they focus more closely on retirement planning.
Private medical insurance was the second most sought-after benefit, chosen by 30 percent of respondents, reflecting growing concern about access to healthcare and financial protection.
Flexible working options also featured prominently. Hybrid working was selected by 22 percent of employees, while remote working weeks and work from anywhere policies were each named by 18 percent.
Other popular requests included wellbeing allowances that employees can spend as they choose and discounts or vouchers for high street retailers, both chosen by 21 percent of respondents.
Cost of living shapes benefit expectations
The results suggest that financial security is a central theme for many employees heading into 2026. With household budgets still under pressure, workers are looking to their employers for practical help that goes beyond basic salary increases.
Figures from the Department for Work and Pensions show that the average employer currently contributes around 4 percent of salary into workplace pensions, slightly above the legal minimum requirement of 3 percent. The new research indicates that many employees believe this level is no longer sufficient.
Demand for greater pension support comes at a time of changing tax rules. The Chancellor’s Autumn Statement confirmed that pension salary sacrifice schemes will be capped at £2,000 from 2029, meaning tax relief will no longer apply to contributions above that level.
Ahead of the cap taking effect, there is a window for employers to consider increasing contributions as part of broader financial wellbeing support.
The desire for private medical insurance and help with day-to-day costs also reflects continuing economic pressures. Eighteen percent of workers said they would like help with home energy bills, while more than one in five prioritised discounts and vouchers for everyday spending.
Flexibility remains a strong draw
While financial benefits dominate the list, employees are also keen to retain the flexible working patterns that became widespread in recent years.
Unlimited paid time off was rated as highly as increased pension contributions, showing how important work-life balance has become to many people.
Hybrid working, remote working weeks and policies that allow staff to work from anywhere were all named as significant attractions. These preferences suggest that despite a wider push by some organisations to bring people back to offices, many employees still see flexibility as essential.
For employers struggling to compete on salary alone, flexible working arrangements may offer a valuable alternative way to attract and retain talent.
Making benefits work harder
Specialists say the challenge for organisations is not only to offer appealing benefits but to ensure staff understand and engage with them.
Benefits packages can deliver good value for both employers and employees, yet they often suffer from low take-up or poor communication. Digital platforms that allow people to personalise and manage their benefits are becoming more common as a way to address this problem.
Matt Russell, chief executive of Epassi UK, said the results showed a clear shift in employee expectations.
“Employees are demanding more financial support from their employers, particularly to provide a boost to their retirement planning,” he said.
He said rising business costs meant many employers were limited in how far they could increase pay. “As many businesses face increased costs and struggle to raise salaries, leaders should be looking for alternative solutions to maintain morale and support the financial wellbeing of employees.”
Russell warned that failing to respond could have consequences for recruitment and retention. “Employers who are unable to do this risk losing talent, which impacts their competitive edge and ultimately productivity,” he said.
He added that technology could help organisations tailor their approach. “Leveraging benefits technology platforms allows employers to offer personalised packages and communicate clearly what’s on offer to drive engagement with benefits and value for money.”
A broader change in reward strategy
The research reveals how expectations around workplace benefits have changed since the pandemic. Where once perks were seen as optional extras, many employees now view them as a core part of overall reward.
As skills shortages persist in many sectors, benefits are likely to play an increasingly important role in employer branding. Experts say companies that listen closely to what staff actually value may find themselves better placed to compete for scarce talent. Stronger pension contributions, meaningful health support and genuine flexibility are the areas most likely to make a difference.
The survey was conducted by independent research agency Opinium in December 2025 and was weighted to be nationally representative of UK adults.
