Few people are prepared to save enough of their salary in a pension to achieve a comfortable retirement despite knowing the 8% auto-enrolment minimum is not enough, a Friends Life survey has found.
The provider's latest survey has revealed 26% of workers choose to leave their employer's pension scheme after being auto-enrolled.
More than a third (35%) of the 2,000 respondents said they would not contribute more than 5% of their salary to their pension pot.
And only 13% of people said they would be happy to personally contribute more than 10% of salary.
Meanwhile, only 14% thought saving the equivalent of 8% of their salary each month (the total level auto-enrolment will reach) would be sufficient to fund a comfortable retirement.
Colin Williams, managing director of corporate benefits, Friends Life, said: "Auto-enrolment is the first step in encouraging people to save for the long-term and consider their financial security in retirement.
"The current economic climate is undoubtedly squeezing employees' incomes, but to prevent retirement poverty we have to motivate people to take responsibility and start saving early. The low starting rate for contributions under auto-enrolment should help in this respect.
"[But] if auto-enrolment fails to kick-start the fight against retirement poverty, the government will have to consider other options, which may include compelling people to save rather than just nudging them along."
The survey also revealed increased tax relief (41%) and a clearer idea of the income that will be provided at retirement (31%) would encourage people to save more.
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