Backing for auto-enrolled pensions

More than half of companies and two-thirds of workers back Government plans for people to be automatically enrolled into pension schemes.

Around 56 per cent of employers supported the scheme, while 64 per cent of individuals said they were in favour of it, according to the Department for Work and Pensions.

From 2012 workers will be automatically enrolled into their company's pension scheme, although they will retain the right to opt out.

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Individuals will have to contribute 4 per cent of their salary to their scheme, with employers paying in 3 per cent and the Government topping this up with 1 per cent.

The minimum contribution levels have raised concerns that some firms may reduce the amount they pay into their staff's pensions in line with the 3 per cent.

But the DWP research found that 94 per cent of companies that currently pay at least this level said they would maintain or increase the amount they contribute.

Nine out of 10 workers said they thought the contributions being made by their employer were attractive.