Increased employer pension contributions have emerged as the most desired employee benefit for 2026, as workers look for stronger long-term financial support from their organisations.
New research shows that nearly a third of employees now rate higher pension contributions as the single most important addition to their benefits package. The findings reflect growing concern about retirement security and the ongoing pressure of living costs on household finances.
The study, carried out by employee wellbeing firm Epassi UK, surveyed 2,000 UK adults and found that 31 percent of employees placed pension increases at the top of their priorities. Demand was even stronger among older workers, with four in ten employees aged 55 and above selecting this as their preferred benefit.
Financial Support Takes Centre Stage
The results suggest a clear shift towards benefits that directly improve financial wellbeing. Private medical insurance ranked second, chosen by 30 percent of employees, while a range of other monetary supports also featured prominently.
Discounts and vouchers for high street shops were prioritised by 21 percent of respondents, and 18 percent called for employer contributions towards energy bills at home.
The emphasis on pensions comes despite most employers already paying above the statutory minimum. Department for Work and Pensions figures show that the average employer contribution is around 4 percent of salary, higher than the legal requirement of 3 percent. Yet the appetite for further increases remains strong.
Upcoming changes to pension salary sacrifice rules may also be influencing attitudes. A cap on tax relief for additional pension contributions is due to be introduced from 2029, which could limit options for employees and employers in the future. Before those changes take effect, many workers appear keen for organisations to maximise contributions where possible.
Flexibility and Time off Remain Highly Valued
While financial benefits dominate the top of the rankings, flexible working continues to be a major draw for employees.
Unlimited paid time off shared first place with increased pension contributions, also selected by 31 percent of respondents. Hybrid working was named as a priority by 22 percent, and 18 percent highlighted remote working weeks or work from anywhere policies.
These preferences underline how employees increasingly view wellbeing and work life balance as core parts of a modern reward package, rather than optional extras.
A wellbeing allowance that staff can spend as they choose was also popular, chosen by 21 percent of employees. The mix of financial and lifestyle benefits suggests workers want support that reflects both immediate pressures and longer term quality of life.
Engagement With Benefits Still a Challenge
The research highlights a continuing problem for many employers. Even when organisations offer a broad range of perks, employees often struggle to understand or access them effectively.
Epassi UK said benefits packages can deliver strong value for both sides when they are communicated clearly and aligned with real needs. Flexible benefits platforms, which allow staff to tailor options to their own circumstances, were identified as one way to improve engagement.
Poor communication or irrelevant offerings can lead to low take up, meaning organisations spend money on schemes that fail to improve wellbeing or retention.
Employers Urged to Rethink Support
Matt Russell, chief executive officer of employee benefits platform Zest and Epassi UK, said the findings showed employees were looking for tangible help with financial security. Introducing his comments, he said pensions in particular had become a central concern.
“Employees are demanding more financial support from their employers, particularly to provide a boost to their retirement planning,” he said.
Russell added that many businesses were struggling to raise salaries in line with expectations, making benefits an important alternative. “As many businesses face increased costs and struggle to raise salaries, leaders should be looking for alternative solutions to maintain morale and support the financial wellbeing of employees,” he said.
He warned that ignoring these expectations could have wider consequences. “Employers who are unable to do this risk losing talent, which impacts their competitive edge and ultimately productivity.”
Russell said technology could help organisations deliver more personalised and effective packages. “Leveraging benefits technology platforms allows employers to offer personalised packages and communicate clearly what’s on offer to drive engagement with benefits and value for money,” he said.
A Signal for Wellbeing Strategy
Money worries remain a major driver of stress, sleep problems and poor mental health. By strengthening pensions, healthcare support and flexible working, employers can address root causes rather than symptoms.
The challenge for organisations in 2026 will be balancing budget constraints with rising expectations. Employees appear to be sending a clear message that wellbeing support must include practical financial help, not just lifestyle perks.
As benefits packages evolve, those employers that listen closely to staff priorities are likely to see the greatest gains in loyalty, engagement and long term wellbeing.