Pensions: the benefit employers must stop whispering about
While salary, bonuses and flexible benefits often take centrestage, pensions remain one of the most valuable and least communicated elements of total compensation. For HR, rewards and finance professionals, this presents both a challenge and an opportunity.
Pensions: The silent powerhouse
Pensions are a long-term investment in employee wellbeing. They represent financial security, future planning and employer commitment. Yet, because they don’t appear in monthly pay packets or offer instant gratification, their true value is often invisible to the workforce.
Employees who actively engage with their pensions are five times more likely to save adequately, contribute four times more, and report 60% higher financial confidence, according to research from Fidelity. Despite this, they remain one of the least understood workplace benefits.
“While staff are quick to set health or fitness goals, many don’t set financial ones.” – Fidelity, Pension Attention Campaign.
This disconnect is a clear signal to HR, reward and compensation professionals that if you’re investing in pensions, you need to talk about it.
The engagement gap
The Department for Work and Pensions has identified behavioural barriers such as “present bias” and “perceived psychological distance” that prevent employees from engaging with pensions. In simpler terms, retirement feels too far away to matter; until it’s too late.
Employers who fail to communicate the value of pensions reinforce this distance. But those who speak up through education, transparency and leadership can bridge the gap and build trust.
A strategic advantage
In a tight labour market, every element of the reward package matters. According to a recent report from Smartpension, only 25% of men and 11% of women feel “very confident” about their retirement savings. This lack of confidence is a vulnerability but also a chance for employers to differentiate themselves.
With rising employment costs and increasing cost of living pressures, pension contributions may fall. Making communication even more critical.
Total rewards teams + finance: A joint mission
Pensions sit at the intersection of cost and care. Finance directors understand the long-term liabilities and funding strategies. HR and rewards professionals understand employee engagement and wellbeing. Together, they can turn pensions from a compliance chore into a strategic asset.
Pensions UK has called on employers to start more conversations with savers. Its guide encourages employers to educate talent about how schemes work and how to make the most of contributions.
Regulatory momentum
The UK government’s pensions reform agenda is accelerating. The 2025 Pensions Bill introduces new duties for reward professionals, including a value-for-money framework and consolidation of DC schemes.
“The reforms are a step in the right direction, but without clear communication and support from reward and compensation professionals, many savers will still fall short of their retirement goals,” said Damon Hopkins, Head of DC Workplace Savings at Broadstone.
This highlights the importance of not just saving but understanding options. Employers who provide that support and communicate clearly with their people can significantly improve their employees’ retirement outcomes.
Proactively communicating pension changes not only meets regulatory expectations, it demonstrates leadership and care to your people.
What employers can do
As an HR and benefits professional, here’s how you can be more vocal about pensions with your people.
- Make pensions visible: Include pension contributions in total reward statements and onboarding materials.
- Educate regularly: Host webinars, share planning tools and offer one-on-one sessions during key stages of life.
- Champion from the top: Encourage senior leaders to talk about pensions in internal communications.
- Use campaigns: Leverage national initiatives like Pension Attention and National Pension Tracing Day.
- Review schemes: Ensure your pension offering is competitive, well-communicated and aligned with your employees’ needs.
Final thought
Pensions are not just a benefit. They’re a promise. A promise of long-term support, financial wellbeing and shared responsibility. But promises only matter if they’re heard.
In a time of rising costs, regulatory change and employee uncertainty, HR, reward and compensation professionals must be more vocal about pensions. Silence is no longer an option.
Supplied by REBA Associate Member, Broadstone
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