Up to 500,000 people on moderate incomes will take out a stakeholder pension by April next year, according to research by the Association of British Insurers (ABI).
However, the research found that 40% of people who were currently unlikely to take out a stakeholder pension would be more likely to do so if it was arranged through their employer.
The ABI urged insurers to work closely with employers to ensure people in all income groups and not just moderate earners had access to stakeholder provision.
ABI director general Mary Francis said: “These results are encouraging for stakeholder pensions. The insurance industry is keen to work in partnership with the government to help make stakeholder pensions a success and achieve our shared objective of ensuring an adequate retirement income for all.”
By Michael Schiniou
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers