The benefits of auto-enrolment have been accepted by the majority of consumers and many believe the policy means they can ‘stop worrying' about making a start on pension saving, research has found.
Data from the National Employment Savings Trust (NEST) found 63% of people agree with auto-enrolment, despite finding the current economic environment difficult.
NEST insight, launched today, also found 67% of people thought auto-enrolment would mean they could ‘stop worrying that had had done nothing about their retirement funds'.
However, with minimum levels of saving set at 8% of qualifying earnings commentators said these people would not achieve desirable pensions.
Hargreaves Lansdown head of pensions research Tom McPhail said: "The problem here is that for most people, the default auto-enrolment contributions will almost certainly not deliver a pension which will meet their expectations.
"For example, a 35-year-old earning £30,000 a year would probably have to save an additional £316 a month on top of their statutory minimum contributions to hit a target pension of two thirds of their pre-retirement earnings."
The report also found employers were not giving themselves enough time to prepare for their duties.
It said under half of employers with fewer than 5,000 workers have confirmed their provider.
Tim Jones, NEST chief executive said: "Automatic enrolment represents a massive opportunity to improve pension participation as pensions go mainstream from this year, and our research tells us that this is what most consumers want. Despite the economic challenges, the time is right for automatic enrolment.
"We are calling on everyone in the industry to work together to help employers prepare, and ensure employers can be confident that implementation will work well. This will be particularly important during 2014 when thousands of employers come on board within a few months of each other.
"Employers need to give themselves enough time to get ready - about 18 months' ahead of their staging date - and they need to understand the needs of their workforce and what help will be available to them meet their new duties."
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