Analysis from Standard Life revealed that 2% extra in pension contributions from an employer can leave you better off by £115,000 when retirement age is reached.

If someone began working for a company on a salary of £25,000 per year and then paid the standard rate of contributions of 5% from the employee and 3% from the employer from age of 22, a retirement pot of £459,000 would be amassed.

But if an employer paid an additional 2% in pension contributions then a retirement fund of £574,000 would be accumulated.

The research also found that if a company paid 3% more in pension contributions then the difference would be £173,000, whereas if an employer paid 10% on a £25,000 annual salary, a pension pot would grow by £403,000 and would climb to a total of £862,000.

Salary is typically one of the major deciding factors over whether to take a job or not, but Standard Life urged a sharper focus on pension provision.

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Workplace pensions can “massively differ”

Dean Butler, managing director for direct retail at Standard Life, said: “Workplace pension packages can massively differ, and it’s therefore important to understand what your employer is offering when deciding whether to start a new job.”

“Our analysis shows that even a small increase in monthly pension contributions from your employer can have an extremely significant impact over the course of a career.

“Of course, there are many factors to take into account when accepting a job offer, including salary, but the full benefits package should be considered as part of the decision-making process. It’s worth taking time to understanding the short and long-term impact on both your monthly income and pension savings, so you can weigh up what’s best for your individual circumstances.”