The Government’s plans for auto-enrolment into a workplace pension scheme from 2012 is supported by 56 per cent of employers, and 64 per cent of eligible individuals, finds the Department for Work and Pensions (DWP).

The plans, which aim to encourage more people to save, also hope to “prevent millions of Britons facing a penny-pinching retirement”, said DWP Minister, Lord Freud.

“It is encouraging that, despite the recession, the majority of employers are still in favour of pension savings. We will work with business and the industry to make automatic enrolment work, so we can give millions more people the chance to save, and an independent review team is currently looking at how we get the details right,” Lord Freud said.

The study showed that most employers that are already making pension contributions of three per cent of more expect to maintain or increase this level of contribution when the rules come into play to compel them to provide pensions for all of their staff. Existing members receiving at least three per cent will continue to do so, according to 94 per cent of employers, and 81 per cent will offer existing contribution levels or higher to non members and new employees.

Among employees, 90 per cent believe the employer contribution is attractive, and 75 per cent admitted they could put four per cent of their wage into a workplace pension, and around half of those who expected to remain saving after automatic enrolment are likely to contribute more than this.

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