The majority (88 per cent) of employees back the Pensions and Lifetime Savings Association’s (PLSA) proposed reforms to the UK pensions system, research by the association has found.

In particular, the research found that more than half (53 per cent) of employees agree that contribution levels should rise gradually over the next decade from 8 per cent to 12 per cent, while 21 per cent of respondents were unsure.

In addition to this, nearly half (46 per cent) agreed that employers and employees should make equal pension contributions, while 42 per cent believed the employer should contribute more.

The research also revealed concerns over state pension adequacy, as more than half (56 per cent) of employees responding to the PLSA’s survey agreed that a full state pension of £10,600 will not provide enough income to enable them to avoid poverty in retirement.

With this in mind, 72 per cent of those surveyed said the state pension should increase in line with the triple lock and 78 per cent agreed it should increase so pensioners do not see their living standards fall.

The findings were published alongside the PLSA’s final recommendations on the reforms needed to the UK pensions system to ensure that savers do not see their living standards fall in retirement.

These final recommendations take account of the findings of the PLSA’s industry consultation, new research on adequacy, the maintenance of the triple lock this year, and the recent passing of the bill to extend auto-enrolment to lower earners and younger workers.

In particular, the PLSA’s proposals emphasised the need to set a new goal for the UK pensions framework to be “adequate, affordable and fair”.

It also suggested that more people should be saving into a workplace pension and at higher contribution levels, arguing that, over the next decade, contributions should rise gradually from 8 per cent to 12 per cent.

However, the PLSA acknowledged concerns around the impact of the cost-of-living crisis, suggesting that where employees should only be required to put in 1 per cent extra, employers should put in 3 per cent extra, with the result that by the early 2030s each will be paying an equal share of 6 per cent.

The PLSA also called for additional help to be given to under-pensioned groups such as women, the self-employed, gig economy workers and others, and for the pensions industry and employers to take action to help people engage with pensions and get better pension outcomes.

PLSA director policy and advocacy, Nigel Peaple, stated: “It is widely recognised that too many people are not saving enough for a good pension income.

“So, perhaps, it is no surprise that there is a high degree of support among employees for the key proposals of the PLSA’s Five Steps to Better Pensions.

“Employees want to know that the state pension will protect them from poverty and that workplace pension saving will enable them to have an adequate income in retirement.

“The right way to achieve these goals is to maintain the value of the state pension and by gradually increasing automatic enrolment contributions from 8 per cent to 12 per cent over the next decade.

“Most of this increase should fall on employers so that, a decade from now, contributions will be split evenly between employers and employees at 6 per cent each.”

PLSA Board chair, Emma Douglas, echoed this, arguing that while great strides have been made over the last decade towards improved pensions adequacy, much more needs to be done.

“The PLSA has sought to both deepen understanding of pensions inadequacy and come up with practical solutions,” she continued.

“The rising cost-of-living has impacted everyone, and these policy recommendations are mindful not to increase the burden on savers in the near-term.

“But the survey shows that employees do value pension saving and want to be sure of achieving a reasonable standard of living in retirement. Now is the time to create a road map for reform for long-term savings.”

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