UK workers are ready to save more for their future, with 53% of employees expressing interest in increasing their pension contributions if their employer offered matching contributions, according to the latest research from workplace pension provider, Penfold.

Penfold’s “Retirement Reality Check” report is based on surveys of 2,000 UK employees and 500 small and medium-sized businesses. This gap between employee willingness and effective employer action, as revealed by the research, represents a clear missed opportunity for improving financial wellbeing.

Just 14% of UK SMEs currently offer matched contributions, despite “wanting to support employees” being one of the most common factors for SME leaders when choosing their pension contribution strategy. Almost half (47%) of UK employees are stuck at the statutory minimum contribution level, meaning they’re not on track for sufficient retirement income.

“Employees are ready and willing to save more for their future; employers just aren’t meeting them halfway,” says Chris Eastwood, CEO and co-founder of Penfold. “The ambitions to save are there, but employees can’t do it alone. Similarly, employers are missing opportunities when it comes to supporting their staff with the benefits they currently offer across their workplace.

“Pension contributions are underestimated in terms of how much they matter to employees. Our findings show that 90% of employees already say their pension influences whether they stay in a role. Yet while businesses routinely invest in other benefits, only 4% say they genuinely can’t afford to contribute more than the minimum. Addressing pension awareness can help employers capitalise on an overlooked opportunity.

“Employer matching is one of the simplest, most impactful changes UK businesses can make,” continues Eastwood. “Financial security is a top priority for people across the country in today’s current climate. Employers that step up by offering matching contributions aren’t just helping people build a better retirement, but also strengthening morale, boosting retention and signalling that they care about their team’s long-term wellbeing.

“With 95% of employees saying the typical 3-4% employer contribution isn’t enough to keep them, the message is unambiguous: doing the minimum is no longer good enough. Sticking to bare minimum contributions risks losing talent. Most small businesses simply haven’t revisited their pension decision in years or haven’t connected their contribution strategy to retention.”

Eastwood concludes: “With only 1 in 7 SMEs matching contributions, businesses nationwide are missing a clear opportunity to boost retention and long-term financial resilience for employees at minimal additional costs for themselves.”

To read the report in full, click here: https://getpenfold.com/retirement-reality-check/