Pension provision and holiday entitlement were ranked as the top benefits considered by individuals when applying for a new job, according to research by MetLife Assurance.
The 1DB Legacy research, which surveyed 765 employees, found that, where respondents were offered defined benefit (DB) pension schemes, over half (53%) said pension provision was the most important benefit, compared to 39% of respondents participating in a defined contribution (DC) pension scheme.
Just under a third (32%) of DC members chose holiday entitlement as the number one benefit, compared to 23% for those participating in a DB pension scheme.
The research also found:
- Among respondents aged 35 to 54, 38% said pension provision was the most important benefit when applying for a new job compared to 30% who chose holiday entitlement.
- For those aged 55 to 64, pension provision became more imperative as a benefit when applying for a new job with almost half (48%) suggesting pension provision was the most important benefit compared to holiday entitlement (20%).
- For those aged over 45, 42% were concerned about not having enough pension income in retirement with 17% very concerned.
- 32% of those aged 18 to 34 said they were concerned about not having enough pension income in retirement, and 9% said they were very concerned.
- 40% of those aged 25 to 34 cited holiday entitlement as the most important benefit when applying for a new job, compared to 22% who cited pension provision as most important.
- 27% of those aged 25 to 34 anticipate retiring before 60, with 28% saving for more than 15 years of retirement.
- Of the total female respondents, 38% believed holiday entitlement to be the number one benefit when applying for a new job compared to 31% stating pension provision.
Wayne Daniel, chief executive officer at MetLife Assurance, said: “The difference in attitudes to pensions between DB and DC pension scheme members illustrates the value that is placed on DB schemes by those individuals and the importance of maintaining those schemes for retention and recruitment purposes.
“More needs to be done to educate employees on the benefits of good quality occupational pension schemes. It is a concern that younger people, who are likely to have longer retirements than previous generations, place less emphasis on this valuable asset when applying for a new job.”
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