Penfold ROI Calculator

Introducing Penfold’s workplace pension scheme isn’t just cost-neutral, your organisation could make a big saving. Upgrading your pension influences more employees to stay in their roles, while salary sacrifice options mean your organisation pays less National Insurance.

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Your results

By moving your pension to Penfold you could save
£98,789 per year

Here's how we worked that out:

£64,289

This is what you could save this year with improved employee retention

£34,500

This is what you could save this year by introducing salary sacrifice

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Find out how to save £98,789 every year with a Penfold Pension

Get in touch to see how much more Penfold’s workplace pension can do for your employees

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How do I use the ROI calculator?

Just enter the number of employees at your organisation, your average annual employee turnover, and the average income of your employees. The calculator shows you how much you could save on National Insurance contributions and employee turnover costs by moving your pension scheme to Penfold and introducing salary sacrifice.

How is salary sacrifice calculated?

Let's look at this from an employee's perspective and an employer's perspective.

Meet Rachel, who earns £50k per year.

  • She currently pays 5% of her earnings into a workplace pension scheme. Her employer adds a further 3%, so her total yearly pension contribution is £4k per year.

  • Rachel agrees to a 5% salary reduction with her employer. This works out at £2.5k, the the same amount she was contributing annually to her pension.

  • Her employer pays that £2.5k into the pension scheme. Her salary is now £47.5k. This is her salary sacrifice.

  • Because she is earning less money, she pays less tax, so her take-home pay increases by £300 per year. 
Meet Bauble, a B2C tech startup that helps people turn unloved jewellery into cash.
 
  • Bauble recently took on their 100th employee and their annual salary bill is £5m. This means they pay National Insurance of £564k each year.
     
  • To help employees take home more of their income, Bauble offer salary sacrifice.

  • If every employee took them up on 5% salary sacrifice their National Insurance bill is reduced to £530k.

  • Bauble stands to save up to £34.5k each year by introducing salary sacrifice.

This information is relevant for tax year 23/24 and 6th July 22 - 5th April 23.

How is the influence of pensions on employee retention calculated?

The average cost of employee turnover in the UK is £30,614, so multiplying this by your total employee base, and then introducing your annual turnover rate shows the likely cost of turnover on your business each year.
 
Our report into the impact of benefits on retention showed that 90% of employees claim pensions are an important benefit that influences their decision to stay in a role, while a report released by Lattice showed 16% of employees leave because they are unhappy with the benefits offered by their employer. Multiplying 90% by 16% shows that 14% of employees can be influenced to stay in their role by their pension.

How do pensions influence employees to stay in their role?

Our study from June 2022 on the benefits that are most likely to influence employee retention shows that pensions take the top spot, with 90% of employees reporting that their pension is an important influence in their decision to stay in their role. We found that since the cost of living crisis hit the UK, employees are increasingly interested in longer-term financial benefits over employer perks such as gym memberships and regular socials.

How can Penfold help with employee retention?

Of all the reasons businesses fail, two of the biggest fall on the shoulders of the people department: not being able to hire the right people, and not being able to keep the right people. In the economic current climate, employers’ focus has moved from acquisition to retention, and we’re seeing forward-thinking people leaders finally realise the potential of pensions to retain the best people. If your organisation invests in your employees’ long-term future, then your employees will be more likely to invest back in your organisation for the long-term.

We’re offering free pension consultations to help you design the right scheme for your business, benchmark your current scheme against your peers and step up your pension offering as you grow.

What is salary sacrifice?

Salary sacrifice is a UK government-approved tax hack that helps your employees save for the future by putting more income in their pension each month, without paying National Insurance contributions on these funds. It’s also a way for organisations to reduce their own National Insurance bill.

How much salary do employees usually sacrifice?

Most employees that opt for salary sacrifice contribute 5% of their gross income to their pension. That's why our calculator defaults to this value.

How can Penfold help with salary sacrifice?

We love hearing from business leaders interested in exploring how they can introduce salary sacrifice with their teams, and we can help with that too. We’ve been launching salary sacrifice schemes since 2019, and can help you understand the savings to you and your employees with a free phone consultation with one of our pension experts. Claim yours above.