Best Workplace Pension Providers in the UK Compared: A Guide for 2025

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Why choosing the right workplace pension matters

Choosing a workplace pension provider isn’t just about ticking a compliance box. It’s a long-term decision that can save your business time and money – while helping your team build a secure financial future.

Whether you're setting up a pension for the first time or reviewing your current scheme, this guide will walk you through the key features, fees, and fund performance of the top UK workplace pension providers – so you can find the right fit for your business.

How to choose the right workplace pension provider for your business

When comparing workplace pension providers, it’s worth digging a little deeper than the headline fees. The right scheme should make life easier for your business and deliver real value for your team. Here are the key things to consider:

• Ease of setup: Setting up a workplace pension shouldn’t feel like a project in itself. Look for a provider that gets you up and running quickly, even if you don’t have a dedicated payroll team. A straightforward onboarding process, clear guidance and minimal admin mean you can focus on your business, not paperwork.
• Ongoing support: A good provider doesn’t disappear once you’re signed up. Auto-enrolment, re-enrolment and day-to-day compliance can be confusing if you’re doing it alone. Make sure your provider offers ongoing support – whether that’s onboarding new employees, handling regulatory tasks, or answering questions when you need them.
• Fees: Costs vary widely across providers, so it’s important to understand exactly what you and your employees will pay. Some charge employer fees, setup fees or monthly admin costs on top of annual management charges. Transparent pricing helps you budget confidently and ensures your team keeps more of what they save.
• Fund performance: Ultimately, the goal of any pension is to help your employees grow their savings over time. Review how each provider’s default fund has performed and how it’s managed. While past performance isn’t a guide to the future, consistent long-term returns can make a meaningful difference to retirement outcomes.
• Payroll compatibility: Your pension should work smoothly with the tools you already use. Check whether the provider integrates with your existing payroll software to streamline contributions and reduce the risk of errors. Seamless payroll compatibility saves time and cuts down on manual admin.
• Employee experience: A workplace pension only goes so far if your team struggles to use it. Look for providers that offer clear dashboards, mobile access, and helpful guidance that supports better saving habits. An engaging employee experience means fewer questions for you and better outcomes for your staff.
• Compliance and risk management: Auto-enrolment and re-enrolment come with legal responsibilities, and missing a step can create unnecessary risk. The right provider should reduce the burden with automated reminders, simple guidance and tools that help you stay compliant throughout the year.
• Investment choice and flexibility: A strong workplace pension should work for everyone, not just for those who choose the default option. Look for providers that offer a sensible range of investment choices, including sustainable or Sharia-compliant funds. Clear explanations and thoughtful defaults help employees feel confident without needing to become investment experts.
• Scalability as your business grows: Your pension provider should support you today and as your business evolves. Choose a solution that can scale easily with new starters, changing payroll needs or multiple locations without adding complexity.
• Reviews, ratings and trust signals: Reviews from employers and employees, along with independent ratings from organisations like Defaqto, can give you a clearer picture of each provider’s track record. Consistently strong feedback is often the best indicator of reliable service and good member outcomes.

A great workplace pension helps attract and retain top talent – and takes the admin headache off your plate.

The top UK workplace pension providers

There are many providers in the UK, but not all are created equal. We’ve compared the top options based on their value to employers and advisers – as well as employees:

• 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.

Penfold is one of the highest-rated workplace pension providers, with:

• Top rated service, tailored to your needs.
• Fully managed onboarding.
• Seamless payroll integrations.
• Proactive compliance support.

Other providers may offer basic setup – but lack the dedicated help and hands-on service that makes managing pensions effortless.

Read Penfold reviews →

See our Defaqto 5-star rating →

Best workplace pension for fees

With Penfold, there are no fees for employers or advisers. For employees:

• 0.75% annual management charge (reduced to 0.40% for balances over £100k).
• No setup fees or hidden costs.
• Transparent pricing, always.

Compare that with other providers like Smart Pension or People’s Pension, who charge setup or monthly admin fees that add up quickly.

Best workplace pension for fund performance

Fund performance plays a critical role in growing employees’ pension pots over time.

The simulated annualised gross and net returns of the Penfold Plan outperform the annualised returns of peers’ default funds over 5 years to 30 September 2025.

Figures for the Penfold Plan are based on a simulation, provided by BlackRock, of how the portfolio might have performed had these building blocks of the plan existed together over the last five years. It’s important to note that it cannot be definitively said exactly how this plan would have performed in the past. Simulations should not be taken as a guarantee of expected past or future performance, but are designed to be illustrative only. A full list of the assumptions made to generate the simulations is available and should be carefully considered.

The figures shown represent a weighted average of performance across 30 age cohorts (ages 36-65) to provide an overall view of member outcomes. Individual returns will vary depending on fund allocation at different points in a member’s investment journey, as well as personal fee structures. For consistency in comparison, returns have been estimated based on a typical pot size of £10,000 and an average salary of £30,000. Actual returns may differ due to factors such as specific employer-negotiated fees, individual pot sizes, and salary levels.

Returns are based on data collected by investment advisors DWA from a variety of sources, including individual providers and data published on Morningstar. Where possible, actual return data has been used; however, some assumptions were made based on underlying fund data due to availability limitations. The impact of charges has been applied on a monthly basis, which may create minor discrepancies with actual experience depending on the charging structure. DWA is happy to review and correct any discrepancies should further evidence be provided.

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.

Employees love Penfold’s:

• Intuitive mobile app.
• Range of investment options (incl. sustainable and Sharia-compliant funds).
• Pension combining tools.
• Savings nudges and forecasting.
• Financial wellbeing support.

Engaged employees = better retirement outcomes and fewer admin queries for you.

Next Steps: Setting up your workplace pension scheme

Once you have compared providers and understand what matters most to your business, the final step is to get your workplace pension up and running. The good news is that the setup process does not need to be complicated. Here is what typically happens next:

Step 1: Choose your pension provider and confirm your scheme details

Once you’ve selected the right provider, you’ll agree the key details of your scheme - such as contribution levels, salary sacrifice setup (if chosen), eligible employees and payroll cycle. Your provider will guide you through each decision so everything is compliant and optimised for your business.

Step 2: Set up your pension account and connect payroll

Your provider will create your employer account and help you connect your payroll system. This ensures employee enrolment, contributions and ongoing assessments run smoothly from day one. Most setups take less than an hour, especially with modern payroll integrations.

Step 3: Communicate the scheme to your employees

You’ll need to inform your employees about the pension plan and auto-enrolment. Good providers supply ready-made email templates, explainer content and FAQs to make this simple. They can also support employee onboarding sessions to help everyone understand the benefits.

Step 4: Go live and run your first payroll

Once payroll is connected and employees are onboarded, you’re ready to go live. Your provider will handle the behind-the-scenes administration and ensure your first payroll runs smoothly - with accurate contributions and full compliance. After that, ongoing management is minimal.

Why thousands of businesses choose Penfold

Penfold is built for modern businesses who want to offer something better. With Penfold, you get:

• Seamless onboarding.
• Top-rated support, tailored to your needs.
• Transparent fees and top performance
• Tools and features that engage employees and encourage saving.

Thousands of businesses trust Penfold to deliver a pension experience that’s easy, supportive, and built for the future.

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This guide is based on publicly available information from provider websites as of August 2025, plus feedback from Penfold users. We’ve aimed to present a fair, accurate comparison – but features may change. Always check directly with providers before making your final decision.

FAQs About Workplace Pensions