Nearly half (45 per cent) of UK employees agree that good contribution levels from their employer constitutes value for money in pensions, although 30 per cent want higher contributions from employers to help with the cost-of- living crisis, research from Cushon has revealed.

The research also revealed that over a third (35 per cent) believe a pension that helps them understand what income they're on track for in retirement would constitute good value for money.

Cushon also pointed out that, "interestingly", these factors were considered more important in terms of value for money than those most often considered by employers, such as low costs (34 per cent) and good investment performance (31 per cent).

This was not the only point of difference between employees and employers, as the research also showed that while almost four-fifths (79 per cent) of employers believe that their pension scheme offers value for money, less than half (49 per cent) of employees agree.

Given the findings, Cushon urged the government and industry to start listening to employees to drive engagement and ultimately ensure better pensions value for money.

It also argued that doing so would also benefit employers from a commercial perspective, pointing out that while only 27 per cent of employers think pensions bolster their recruitment offering, 78 per cent workers view a company’s pension offering as an important factor when looking for and choosing a job.

Cushon director of policy and research, Steve Watson, highlighted the findings as demonstration of "just how important this is when it comes to ensuring employees see their pension as offering value for money".

“We have always advocated for employers to listen to their employees when it comes to their pension offering," he continued.

“Not only is there an opportunity here for employers to aid their employees with saving for later life, there’s also a commercial motive too with many prospective hires looking at a company’s pension offering when picking a new job.”

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