Two in five (43 per cent) pay in the minimum amount while 13 per cent pay the amount their employer recommends.
The research found that men are more likely to increase their contributions than women (33 per cent vs 25 per cent), as are younger age groups.
Some 33 per cent of 18-34 year olds regularly pay in more than the minimum, compared to 28 per cent of 35 to 54 year olds and 22 per cent of over 55s.
Among those who have increased their contribution levels, nearly half (44 per cent) said they do so because they want to put as much as they can afford into their pension for their future.
Almost a fifth (18 per cent) want to benefit from compound interest, and 17 per cent pay in more because they received a pay rise.
Holt said: “Households are currently facing huge financial pressures, and it’s understandable that many people are struggling to balance short and long-term financial priorities.
“However, if your finances permit and it’s appropriate for your circumstances, the sooner you engage with and begin to contribute to your pension, the better your ultimate retirement outcome will be.”
When it comes to those who knew they could increase their contribution levels above the auto-enrolment minimums but choose not to, 39 per cent said this is because they can’t afford more than the minimum amount.
Over a quarter (26 per cent) are putting their savings towards other investments instead, such as buying a house, and 19 per cent need to use the extra money towards looking after their family.
But 15 per cent prefer to use any extra money on enjoying themselves, and 12 per cent said they have never got round to it.
Holt added: “For those in a position to do so, such as when you receive a pay rise or bonus, then using that extra income to top up contributions can be beneficial in the long term as the impact of compound interest is much more significant and can result in a much larger retirement pot.”
sonia.rach@ft.com
What do you think about the issues raised by this story? Email us on FTAletters@ft.com to let us know
