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Join Which? MoneyThe workplace perk that could add thousands to your pension pot
Nearly half of those paying into a workplace defined contribution pension don’t know how much their employer contributes
Holly covers personal finance topics from credit cards to wills. She enjoys turning complex money matters into clear, practical advice.
Getting your employer to pay more into your pension, beyond the legal limit, can boost your pension pot by thousands of pounds each year.
But when we surveyed UK workers, we found that nearly half (46%) of those who are paying into a defined contribution workplace pension didn’t know how much their employer contributed.
And some job hunters could also be at risk of missing out. Just three in ten working adults say the level of employer pension contributions would be one of the three most important benefits when considering a job offer.
Here, we explain why it pays to pay attention to your workplace pension and three steps you can take to get the most out of it.
Not all pension schemes are equal
You may have spotted job adverts promising a 'generous' pension as a workplace 'perk'. But what you get may not be generous, or even optional for the employer.
By law, your employer must enrol you into a pension scheme if you’re aged between 22 and state pension age, and earn at least £10,000 a year.
The minimum total contribution is usually 8% of your qualifying earnings, of which at least 3% should come from your employer.
A third of eligible private sector employees only receive the minimum pension contributions, according to Department for Work and Pensions figures, but some employers offer much more.
This is essentially free money, adding thousands of pounds to your pension pot and potentially making the difference between an austere and comfortable retirement.
The table below illustrates how much higher employer contributions could add to the total annual pension contribution for someone earning an average salary.
How higher contributions can boost a pension each year
| Minimum contribution rates (5% employee, 3% employer) | 5% employee contribution, 5% employer | 5% employee contribution, | 5% employee contribution, 10% employer |
|---|---|---|---|
£2,624 | £3,280 | £4,264 | £4,920 |
| Difference | +£656 | +£1,640 | +£2,296 |
Notes: Assumes annual salary of £39,039 (median full-time salary as of April 2025, ONS). Source: MoneyHelper. Pension contributions are made on qualifying earnings.
Are you overlooking extra pension contributions?
In August 2026, we surveyed 1,294 UK working adults about workplace pensions.
While most (55%) said they’re likely to consider employer pension contributions when taking a new job, a significant minority expressed indifference – and risk losing out on additional savings as a result.
One in six (16%) said they’re unlikely to take employer contributions into account, while just over a quarter (27%) didn’t express an inclination either way.
And we found that other benefits are more popular.
Three in 10 (31%) working adults said the level of employer pension contributions would be one of the three most important benefits when considering a job offer, ranking behind paid sick pay (53%), flexible working hours (45%) and holiday allowance (45%).
If you’re job hunting, don’t be afraid to ask about the pension scheme if necessary, as employers don’t always provide clear information about pension contributions on job ads.
- Find out more: what is a defined contribution pension?
Decent pensions aren't distributed equally
A recent report from the Institute for Fiscal Studies found that higher earners are much more likely to receive large employer contributions: in 2024, 46% of savers in the highest earnings quartile receive at least 6% of gross pay, compared with just 22% of those in the lowest quartile.
Pension provision also differs sharply across industries. Some 52% of savers in accommodation and food services receive the statutory minimum, compared with just 5% of those in finance and insurance.
The Pensions Commission is currently considering whether to change the rules around automatic enrolment, amid concerns that millions aren’t saving enough for retirement.
- Find out more: are you making the most of your workplace pension?
Take advantage of compound growth
When we asked those unlikely to consider employer pension contributions why, the most common reason was that retirement feels a long way off (33%). One in six (17%) said they wouldn’t contribute to the pension anyway.
Older workers are far more likely to pay attention to pensions: half (49%) of those aged 55 to 64 said the level of employer pension contributions would be one of the three most important benefits when considering a job offer, compared with one in 10 (11%) of those aged 18 to 24.
It’s understandable that pensions don’t come top of the list for young savers, at a time when the financial pressures of day-to-day life can make saving anything a real challenge.
But making the most of any additional employer contributions available and giving them time to grow could significantly boost the value of your pension.
Standard Life estimates that two thirds of the value of a typical pension pot comes from compound investment growth, not you or your employer’s contributions.
This chart shows the overall value of a typical £100,000 pension pot, based on Standard Life’s analysis of government modelling.
Source: Standard Life analysis of government modelling. A pension is a long-term investment. Its value can go up or down and could be worth less than what was paid in.
- Find out more: how to boost your pension.
The ‘hidden pay rise’
Additional employer contributions are often described as a ‘hidden pay rise’, as they can boost your pension pot by thousands of pounds each year.
If you’re contributing to a workplace pension, it’s worth checking what’s on offer to make sure you’re making the most of it. Some employers offer a fixed amount, while others will match the amount you put in.
And you might still have the right to employer contributions, even if you don’t qualify for automatic enrolment.
Those aged 16 to 21 or state pension age to 74 who earn more than £10,000 a year have the right to opt in to their pension scheme and receive employer contributions, as does anyone aged 16 to 74 earning between £6,240 and £10,000 a year. Speak to your employer to find out how to join the scheme.
Pay attention to your workplace pension
Here are three steps you can take to ensure you’re getting the most from your workplace pensions.
1. Know your rights
Previous Which? research found widespread confusion around workplace pensions, but knowing what you’re entitled to will help you recognise a generous scheme from one that only pays the legal minimum.
Under auto-enrolment rules, employers must contribute at least 3% of any earnings between £6,240 and £50,270 if you’re aged between 22 and state pension age and earn at least £10,000 a year.
2. Check how much your employer contributes – and if they’ll pay more
If you’re not sure how much your employer contributes, check your payslips or pension statement, or contact your HR department,
Some employers will match your contributions if you increase yours, but we found that a fifth of those paying into a workplace defined contribution (DC) pension weren’t sure if their employer offered this.
Speak to your employer to find out what’s on offer. You can use Moneyhelper’s calculator to find out how much more you could save into your pension if you increase your contributions.
3. Consider ad-hoc contributions
Three quarters (75%) of workers with a defined contribution pension have never made an ad-hoc contribution, according to our survey.
If you can’t commit to increasing your regular contributions, making one-off top-ups when you can afford to – for example, if you get a bonus – can help boost your pot.
You’ll benefit from pension tax relief (assuming you're within your annual allowance) and your savings will have the chance to benefit from compound interest.
Some employers offer bonus sacrifice: instead of being added to your payslip, your bonus is paid directly into your pension, saving you additional money on national insurance contributions.
For example, if you earn £30,000 and receive a £1,000 bonus as pay, you'd take home £720 after tax and National Insurance contributions. If you divert it to your pension via bonus sacrifice, the full £1,000 would go into your pot.
From April 2029, the amount you can pay into your pension via salary sacrifice will be capped at £2,000. You'll still be able to pay more than this into your pension, but these contributions won't be exempt from National Insurance.
Our research: Which? surveyed 1,294 adults in the UK between 14 and 17 August 2026. Deltapoll carried out the fieldwork online, and the final data have been weighted to represent the UK working adult population.
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