Almost one in six (57%) of working-age adults are not confident they are saving enough to maintain their standard of living in retirement, while 82% see under-saving as a major issue in the UK, according to research for Pensions UK.

The organisation is calling on the Government to set a clear timetable for increasing minimum automatic enrolment contributions, with 31% of respondents who expressed a view supporting higher contributions, compared with 3% favouring a reduction.

Employer support also rises when reforms are phased and businesses are given time to prepare. More than 70% of small and medium-sized employers support higher minimum contributions if changes are phased in, with 71% of small firms and 79% of medium-sized businesses backing increases when given two years to prepare.

Overall, support among businesses of all sizes rises to between 33% and 52% when reforms are phased or announced with two years' notice.

The research by Yonder Consulting for the pensions industry body surveyed 1,623 non-retired adults and 251 employers with up to 249 employees in July.

Pensions UK has called for minimum contributions to rise gradually from 8% to 12% of qualifying earnings by 2035, split equally between employers and employees.

Zoe Alexander, chief policy officer at Pensions UK, said: “With the Second Pensions Commission finalising the package of proposals that will form its final report due next Spring, we are approaching crunch time for political decision making on pensions adequacy.

"Our research shows the public understand that under-saving is a serious national challenge, and employers are much more open to higher contributions when changes are phased and clearly signalled.

“Now is the time to set a timetable. Delaying reform risks consigning future generations to low retirement incomes and benefit dependency."

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