Best UK Workplace Pension Providers Compared

Thursday 21st November, 2024

Compare the UK’s top workplace pension providers to find the right scheme for your business and employees.

What Makes the Best Workplace Pension?

Choosing the right workplace pension provider is one of the most important decisions for any business. Beyond meeting legal requirements, the best workplace pensions should streamline administration, provide excellent support, and empower employees to save confidently for their future.

In this guide, we compare the top workplace pension providers in the UK, helping you identify the best option for your business. From features to fund performance and fees, we’ve evaluated the top providers to make your decision easier.

The Top UK Workplace Pension Providers

The workplace pension market includes many options, but not all providers are created equal. To help you cut through the noise, we’ve focused on providers offering modern, effective solutions for businesses and employees alike. Here’s our list of the top workplace pension providers:

Penfold
Nest
Smart Pension
Cushon
NOW: Pensions
The People’s Pension
Aviva
Royal London
Scottish Widows

Each provider offers unique features, pricing structures, and fund performance. Below, we’ve broken down what makes these pensions stand out across three key areas: business features, fund performance, and employee benefits.

Best Workplace Pension for Businesses

For businesses, the right workplace pension should be simple to manage and provide outstanding support. Features like dedicated account managers, compliance support, and payroll integrations are essential for reducing admin and meeting your obligations.

A comparison table of pension providers—Penfold, Nest, Smart Pension, Cushon, NOW: Pensions, People’s Pension, Aviva, Royal London, and Scottish Widows—showing pension types, ratings, and features. Penfold, with a group personal pension, has a 5★ Defaqto rating and 4.4★ Trustpilot rating, offering features like a dedicated account manager, managed onboarding, launch events, compliance support, payroll integrations, and pension benchmarking. Other providers vary, with NOW: Pensions rated lowest at 2★ Defaqto and 2.9★ Trustpilot.

In independent ratings, Penfold stands out as one of the top-rated workplace pensions see our Trustpilot reviews and Workplace pension Defaqto rating, offering:

A dedicated account manager for every business.
Fully managed onboarding to save you time.
Seamless payroll integrations.
Compliance support to ensure peace of mind.

Other providers, such as Nest and Smart Pension, also offer payroll support, but fewer business-focused features like account managers or tailored compliance help.

Best Workplace Pension for Fees

Fees can significantly impact the value of workplace pensions. While some providers charge setup or admin fees, Penfold offers a no-cost solution for businesses:

No business fees – saving you money.
Transparent employee fees starting at 0.75%, with discounts for balances over £100k.

In contrast, providers like Smart Pension and People’s Pension charge setup fees or ongoing admin costs, which can add up for businesses.

A table comparing pension providers’ fees, including business fees, employee annual management charges, and other employee fees. Penfold has no business fees, an annual management charge of 0.75% (0.40% for balances over £100k), and no additional employee fees. Other providers vary: Nest has no business fees but a 1.8% charge per contribution; Smart Pension charges £30/month for BACS payments plus £1.75 monthly admin fees; and People’s Pension has a £500 setup fee and £4.50 annual admin charge.

Best Workplace Pension for Fund Performance

Fund performance plays a critical role in growing your employees’ pension pots over time. The chart below compares the annualised growth of default funds for leading providers over the last five years:

A bar chart comparing gross and net returns (%) for different pension providers: Penfold, Nest, Cushon (Sustainable Growth), Smart Pension, Scottish Widows, Aviva (My Future Focus), People’s Pension, Royal London (Default), Standard Life (Sustainable M. Asset), and NOW: Pensions. Penfold shows the highest returns (7.6% gross, 6.8% net), while NOW: Pensions has the lowest (3.6% gross, 3.2% net)

Penfold consistently delivers some of the highest net returns, ensuring your employees’ savings work harder. While other providers like NOW: Pensions and Standard Life lag behind in fund performance, Penfold combines strong returns with competitive fees.

Best Workplace Pension for Employees

A great workplace pension isn’t just good for your business—it’s also a valuable benefit for your employees. The best providers offer tools that empower employees to save effectively, with features like:

Mobile apps for 24/7 access to savings.
Sustainable and Sharia-compliant investment options.
Retirement income forecasting and savings nudges.

Penfold leads in this category with an intuitive app, a wide range of investment funds, and tools like pension combining, savings goals, and financial wellbeing programs. Providers such as Aviva and Cushon also offer strong employee features but may lack the same breadth of tools or ease of use.

Why Choose Penfold as Your Workplace Pension Provider?

With its focus on modern businesses and employee empowerment, Penfold offers one of the most comprehensive workplace pensions in the UK. Here’s why thousands of businesses trust us:

Seamless setup with fully managed onboarding.
Dedicated account managers for ongoing support.
High-performing funds and competitive fees.
Tools and features that engage employees and encourage saving.

Why Penfold Could Be the Right Choice for Your Business

The right workplace pension can help businesses attract top talent, save time on admin, and provide employees with the tools to plan for a comfortable future. Penfold’s award-winning workplace pension includes all of this and more.

Request more information or get started with Penfold for free today and see why we’re trusted by thousands of businesses across the UK.

FAQs About Workplace Pensions

The best workplace pension provider depends on your business’s needs, but Penfold stands out for its support, fund performance, and employee features.

Consider factors like fees, fund performance, onboarding support, and tools for employees. Use our comparison table above to evaluate the leading providers.

Some providers, like Penfold, offer workplace pensions with no fees for businesses. Others may charge setup or admin fees, so it’s essential to compare costs.