The majority of employers are in favour of using auto-escalation schemes to increase contribution rates in defined contribution (DC) schemes, according to research from the Association of Consulting Actuaries (ACA).
The organisation's 2013 Pension Trends Survey found that almost six out of ten employers (57%) supported arrangements modelled on the Save More Tomorrow programme adopted in the US.
The survey highlighted the need to increase DC saving rates in the UK, revealing that contributions had remained virtually unchanged over the last decade.
Average combined employer and employee contributions have risen from 9.4% to 10% since 2003, while average contributions to defined benefit (DB) schemes have increased from 17.6% to 28%.
The ACA said this meant contributions had failed to keep pace with the increasing costs of providing pensions as life expectancy continues to increase and investment returns stall.
ACA chairman Andrew Vaughan said this was likely to get worse in the coming years as most companies began auto-enrolment at the minimum contribution level of 2% of qualifying earnings, rising to 8% by 2018.
He said: "In our survey report, we explore the virtues of a Save More Tomorrow initiative, which has worked in the US and is worthy of consideration as a means of encouraging higher pension contributions over the years ahead as the economy grows - increased contributions that are essential as lifetimes in retirement extend.
"With the state pension age moving towards 70 for today's younger employees, the added value of higher private pension savings is becoming clear."
The Pensions Trend Survey gathered responses from 308 firms with 430 schemes.
This is the second report the ACA has published based on the 2013 survey, with the first highlighting employers' support for the government's defined ambition project (PP Online, 7 November).
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