A total of seven in 10 Brits in workplace pensions would like the government to introduce a compulsory contribution rate that will result in an adequate retirement income, BlackRock has found.

According to a survey of over 500 defined contribution pension scheme members aged 30 to 69, BlackRock noted that members are unsure about how much they think they should be saving for retirement and would like the introduction of compulsory savings rates.

At present four in 10 respondents said they were unaware of how much of their salary they should save into their workplace pension. The same number of respondents admitted to having no idea what their current DC pension balance is and only one in 10 are aware of the current figure.

While contribution rates are set to rise to eight per cent in April 2019, BlackRock said it feels that this could, “create a false sense of security among workplace pension savers about how much they need to save for retirement.”

Only a small proportion of Brits are actively engaged with their pension savings, with a third believing they are on track to achieve their desired retirement; while one in five has never checked the value or performance of their current DC pension pot.

The survey also found that there is a disconnect between what members and their employers believe should be the main focus in scheme design. Views are particularly dissimilar when it comes to investments. Schemes have focused on keeping investments simple with default funds, however, almost half of respondents said that they want their employer to focus on attaining good investment returns. Less than a quarter of participants wanted their employer to prioritise ‘simple-to-understand’ investment options.

From its findings, BlackRock has suggested (in line with the DWP) that the minimum contribution rate is gradually lifted to 15 per cent. However, the firm said: “While 15 per cent is a good benchmark and there are other rules of thumb, such as contributing half your age, the reality is much more stark,” as the majority are saving a lot less than this.

BlackRock head of UK DC pensions Claire Finn commented: “The introduction of Auto Enrolment was a bold and much needed step to promote a broader culture of saving in the UK. But it needs to go further. Brits are now largely accountable for their own retirement provision, and our survey shows that those saving into a workplace pension need greater guidance as to how much they need to save if they want to meet their needs in retirement. The increase in the contribution rate to eight per cent in April 2019 is a step in the right direction but could be misinterpreted as the ‘magic number’. We need to help savers understand that even eight per cent is unlikely to be enough for them to retire comfortably.

“One of the biggest surprise factors from our survey is the divergence in opinion between members and employers as to what constitutes good investment design. Employees are crying out for more guidance as to how much they need to be saving into their DC pension, and they want their employer to focus on getting a good return on their hard earned cash. This compares to schemes commonly prioritising keeping the underlying investments simple. We believe schemes should instead focus their simplicity on contribution rates, and prioritise an optimised default investment.”

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