New report benchmarks evolving benefits landscape

A new report showing a snapshot of how employers are shaping pensions and benefits in the face of major shifts in regulatory pressure is being launched today by Hymans Robertson. The Employee benefits 2026: trends and employer priorities aims to understand current practice around pensions and benefits, highlight where risks arise and suggest practical steps that can lead to better outcomes for employees, whilst also balancing cost control for employers at a time when many are facing mounting cost pressures. The leading pensions and financial services consultancy warns that without early action, employers risk further rising benefit costs and weaker staff retention.

The report draws on results from a survey of UK corporates, as well as insight from clients. The findings show that despite the growing pressures on employers, they are making progress to reassess how they support their people and ‘do the right thing’, even when the choices are difficult. The firm says that employers don’t need to overhaul everything at once but urges them to make small, practical changes to ease future budgetary pressure, improve fairness, strengthen resilience and help employees feel more secure.

Speaking about the survey findings, Hannah English, Head of DC Corporate Consulting, Hymans Robertson, said:

“Our aim with this report is to help employers understand where they already have strengths and where a targeted shift could go a long way to support people more effectively. We know from experience that better outcomes do not always require bigger budgets, or indeed that is affordable to employers or staff alike. Often, improved outcomes simply require a clearer view of what employees need, and a willingness to adjust.

“The pace of change in pensions and benefits 2025 has been rapid. Rising costs, and growing expectations around fairness, mean employers are under pressure to rethink their benefits strategy. What our research shows is that while many employers are taking steps in the right direction, the environment they operate in has become far more demanding. The old assumptions about what people need from their benefits no longer hold.

“With pensions, for example, our data shows that most employees are still enrolled in their pensions at very modest contribution levels. That means many people are heading towards retirement outcomes that will fall short of what they expect. Employers can change this picture, but it requires stronger mechanisms that help people save more over time, and in some cases higher default contributions. Not all of this has to be expensive, but both demand a conscious focus on who needs to save more and how this can be achieved within employer’s cost envelopes. Upcoming changes to NI relief on salary sacrifice pensions and the forthcoming Pensions Commission review will push employers to review their reward strategies and adapt quickly.

“We’re also seeing pressure points in health and protection. PMI remains a core benefit, yet access is far from equal. A sizeable number of employers still limit eligibility by grade and that carries fairness risks even when the reasoning is understandable. The same is true of income protection. Most organisations offer it, but the details vary so widely that two employees in similar situations could experience wildly different levels of security. Cost is one part of the story, but design plays a huge role in shaping real outcomes.

“Financial wellbeing is another area where employers are trying to do more. Despite this, many are still relying on low-cost support like discount schemes or webinars. These are helpful, but they can’t replace personalised guidance when people are trying to make decisions that affect their long-term security. The gap between what employers offer and what employees say they value is one of the biggest risks for retention but is also one of the biggest opportunities.

“Small well-targeted changes in benefit structure, a rethink on eligibility rules or even a clearer communication strategy can make a real difference. Budget pressures are real and aren’t not going away, but fairness and financial resilience can still be improved with thoughtful action.”

Important information

This communication is based upon our understanding of events as at the date of publication. It is a general summary of topical matters and should not be regarded as financial advice. It should not be considered a substitute for professional advice on specific circumstances and objectives. Where this page refers to legal matters please note that Hymans Robertson LLP is not qualified to provide legal opinion and therefore you may wish to obtain independent legal advice to consider any relevant law and/or regulation. Please read our Terms of Use - Hymans Robertson.