Young workers say most-wanted work perk is more cash for their PENSION

Businesses may be trying to lure in young staff with cycle to work schemes, ‘new pet leave’ and subscriptions fancy apps – but under 35s say the perk they most desire is having more money put towards their pension.

Almost a third of employees aged between 18 and 34 ranked increased pension contributions as one of their most desired workplace benefits, according to research from employee benefits platform Zest.

Younger workers appear to have turned their focus to their finances, with seven out of 10 saying that they would like more financial support from their employers.

Among the least popular benefits were cycle schemes, season ticket loans, annual leave for getting a new pet, app subscriptions and fertility treatment benefits.

Benefits package: Younger workers appear to have turned their focus to their finances, with seven out of 10 saying that they would like more financial support

As many as a third of businesses are unable to raises salaries in line with inflation, according to Zest, meaning that attractive benefits packages are becoming increasingly important for employers to hire and retain talent.

Looking to make up for lower salaries, more than half of young employees report that the benefits package is the most important thing they look for in employment.

A huge 62 per cent of younger employees said they would leave their job if they were offered a better benefits package in a different role.

Other financial incentives were also among the most popular perks, with 21 per cent hoping for their employer to contribute to their home energy costs, and 20 per cent seeking discounts on high street brands or a workplace savings scheme.

Matt Russell, Zest chief executive said: ‘With many businesses unable to raise salaries during the cost of living crisis, benefits provide a way to support employees with their finances and overall wellbeing.

‘With the new hybrid world of work clearly established, more ‘traditional’ benefits such as support with travel costs, have become outdated.

‘Modern employees who work from home for half of the week, or entirely remotely, will benefit very little from a season ticket loan and according to our findings, would be far better off with paid mental health leave to use at their discretion.’

Wellbeing benefits also ranked high in the minds of younger employees, according to the survey of over 2,000 people, with a third reporting that they want more perks focused on their wellbeing, compared to an average of just 24 per cent.

Private medical insurance came in as the second most favoured benefit amongst those aged between 18 and 34, while for the higher age categories it was the most popular and was selected by over half of over-55s.

Those preferring jobs that offer paid mental health leave has reached one in four amongst 18 to 34-year-olds, whereas only 18 per cent favour this on average.

Spurred by the popularity of hybrid working, offers of season ticket loans are now favoured by just four per cent, while a cycle to work scheme is wanted by just eight per cent of younger workers.

How to get the most out of your pension 

Under auto enrolment, employers will top up your pension by a minimum of three per cent of your earnings between £6,240 and £50,270. Tax relief from the Government will provide another 1 per cent.

The scheme requires you to contribute 4 per cent yourself, or sacrifice all of it by opting out.

But for many, especially those employed by large firms, extra top-ups are often available, meaning that your employer might be willing to match up to 6 per cent of your earnings as its minimum contribution to your pension.

Even after you have maxed out your employer’s matched contributions, you will carry on benefiting from free Government top-ups.

There is a relatively generous annual ceiling on how much you can pay into your pension and get tax relief – the equivalent of your annual salary, up to a maximum of £60,000.

Employers also allow staff to take a ‘pay cut’ in the form of a salary sacrifice, which ploughs the money into your pension instead.