Only a third (32%) of UK job hunters bother to ask a company about its pensions provision when interviewing for new jobs, according to research released by NOW: Pensions. A further third (37%) admit they don’t even ask upon joining, either because it doesn’t occur to them (18%) or simply because they are waiting to be told (19%).
According to the study, young people are the least likely to think about pensions when looking for a new job. Over a quarter of young people[1] (27%) have never thought to ask, while less than a fifth (18%) asked about pension provision at interview. On the flip side, pensions awareness increases exponentially for the over 55s, with almost half (42%) taking the time to ask the question of would-be employers upfront.
In terms of what job seekers do prioritise, three quarters (72%) rate holiday entitlement as the most important benefit, with less than half (49%) choosing pensions. This figure falls to less than a third (31%) when it comes to young people, who put pensions fourth on their priority list behind holidays(71%), bonuses (47%) and maternity pay and leave (33%).
Young people are also the most interested in short-term perks like duvet days, with over a quarter rating these compared to less than one in 10 of over 55s. By contrast, those aged 55 + have the most interest in the quality of the pension (61%) but still put it second to holiday (68%).
Morten Nilson, CEO of NOW: Pensions said: “With virtually every working person in the UK set to be automatically enrolled into a workplace pension over coming years, pensions are destined to become part of the fabric of working life, so it pays to know exactly what your employer is offering.
“The main question to ask prospective employers is what percentage of salary they will contribute to your pension. Think of their contributions as a pay rise so be sure to ask at interview stage, it should be as important as salary.”
Nearly three quarters (74%) of respondents say they would value education in the workplace about pensions. Of those, 53% think it should be delivered by an independent financial adviser and 43% say it should come directly from their employer. The pension providers themselves were the least popular choice, with only 23% of people thinking this was the best source of advice.
Morten Nilsson continued: “Remember it’s never too soon to start saving into a pension. Leave it longer to get saving and you will have to put more of your salary aside every month to catch up.”
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