The think tank said the move would improve retirement incomes, boost labour market fairness, and enhance public trust in business.
The SMF is calling for mandatory disclosure of employer pension contributions in all job adverts to be added as an amendment to the Pension Schemes Bill, which is currently before Parliament.
The proposal is designed to raise public awareness of pensions and stimulate demand for better employer contributions, amid mounting concerns about widespread under-saving for retirement.
According to Government figures, 12.5 million working-age adults are not saving enough to meet even basic thresholds for adequate retirement income. Around four million people are set to fall short of the “minimum retirement standard” – meaning a retirement without a car, limited grocery spending, and a single UK holiday each year.
The SMF said that despite these warnings, policymakers have taken little action, in part because there is little political pressure to act. It pointed out that voters rarely raise pensions with MPs, and most workers remain unaware of how little they are saving or receiving from employers.
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The SMF proposes making pension contributions visible in job ads to help workers treat pensions as a form of pay and to encourage employers who offer good pension terms to highlight them as a recruitment asset.
James Kirkup, SMF senior fellow, said: “Too many people are heading for retirement without enough savings – and most of them don’t even know it. That’s partly because we’ve allowed pensions to become invisible. Making employers state their pension contributions in job ads would help workers make better choices, create more pressure for higher contributions, and support fairer labour market competition.
“This proposal isn’t just good for workers’ futures – it’s good for the reputation of business. Being seen to treat your staff well, including through decent pension contributions, is something the public values and supports. That’s something all political parties and responsible employers should pay attention to.”
