The corporate pensions paradox: is your spend providing value?

Insights

2 minutes

17 August 2026

Workplace pensions are one of the most significant benefits that employers fund.

But if the employees are not engaging with their pension, setting clear goals or understanding the support available, that investment may not be delivering its full value.

Are employees getting the full value from your pension spend?

Employees at medium-sized businesses are confident about their retirement prospects. But our latest research suggests many may not be taking the steps needed to turn that confidence into better outcomes.

Nearly two-thirds of employees at medium-sized employers say they feel certain they will retire with a comfortable income. Yet many have not set clear financial goals, don't know where their pension is held, and aren't regularly using the tools available to help them plan.

For employers, this creates a clear challenge. If employees are disengaged, underinformed or relying on assumptions, pension outcomes may fall short of expectations. That can affect workforce planning, retention, productivity and long-term governance.

In 'The corporate pensions paradox', we explore the gap between employee confidence and retirement planning behaviours, and what employers can do to strengthen governance, improve engagement and help employees get more value from their workplace pension.

What's inside the report?

The report explores:

  • Why employee confidence may not be supported by detailed retirement planning. 
  • The scale of pension disengagement among workers at medium-sized employers. 
  • How ‘set and forget’ behaviours could affect long-term outcomes.
  • Common misunderstandings around salary sacrifice. 
  • Practical steps employers can take to improve governance, engagement and value for money. 

Key findings 

  • 65% of employees feel certain they'll retire with a comfortable income 
  • Only 24% have set clear financial goals 
  • 60% don't know where their pension is or what it holds 
  • Only 7% have changed their investment strategy in the past year 
  • 59% are unaware of salary sacrifice changes coming in 2029

The corporate pensions paradox

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At Howden Employee Benefits, we believe that investing in your people is investing in your future. We help to create pension strategies that go beyond simply meeting your legal requirements. They support business growth, empower your employees and strengthen long term financial wellbeing.

With our experience, global market scale and data-led insight, we help ensure your benefits deliver measurable outcomes. Ultimately, great benefits don’t just protect your people, they power business performance.

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