After salary, employer pension contributions are typically the largest employee cost, yet many organisations don’t regularly review their Workplace Pension Scheme, with some not having reviewed since Auto Enrolment launched 14 years ago.

The cost of standing still is real.

All Workplace Pensions have charges deducted from an employee’s account and a provider charging just 0.20% more than what is achievable on the market for your default investment fund could cost a 30-year-old employee c.£17,000 by retirement*. This is money that would otherwise be in their pension fund at retirement, if a better management charge had been secured. Having an underperforming default investment fund can also significantly impact an employee’s retirement plans.

*The calculation assumes the individual has an existing fund of £50,000, is contributing £200 per month, with contributions adjusted by inflation at a rate of 2% and 5% assumed growth per annum. The value of investments can go up or down and you may not receive as much as you put into your Workplace Pension.

Four reasons to review now:

Lower Charges A reduction of 0.20% in charges could add c.£17,000 to an employee’s pension pot* over their working life. Small percentages compound into life-changing differences.

Better Investment Performance Default funds have evolved significantly. Some providers are increasing risk with a view to better returns, matching how people access their pensions in retirement. Is your Workplace Pension keeping pace?

Pension Tax Relief Are you maximising employer National Insurance savings through salary sacrifice, encouraging additional employee contributions and managing high earner tax risks?

Added Value Benefits Today’s pension providers offer far more than just savings—mobile apps, financial wellbeing support covering debt management and savings, pension tracing tools, and digital calculators that engage employees with their future. Does your provider offer these and how well do you communicate these benefits to your employees?