What are Pension Contributions?
Pension contributions are payments made by both an employee and employer towards the employee's pension savings.
In the UK, the legal minimum total pension contribution is 8% of an employee's salary. This is made up of a minimum of 3% from the employer and 5% from the employee.
You can choose to increase your pension contribution amount to give employees more money towards their retirement savings. Top employers are offering employees anywhere from 5 - 12% pension contributions.
Why should you offer pension contributions?
Offering generous pension contributions is a great way to support your team's retirement plans & boost their savings. Here's how providing generous pension contributions can benefit you and your team...
Benefits to your employees:
- More money in their pension savings for when they retire.
- Peace of mind that they'll be able to enjoy retirement as they'll have a substantial source of income when it comes to it.
- Less pressure to make additional savings now for retirement = more money in their pocket!
Benefits to you:
- Attract top talent with highly competitive pension contributions.
- Retain talent — if your team are getting gold standard employer pension contributions, why would they want to go elsewhere?!