Savers feel positive about the upcoming rise in auto-enrolment (AE) contributions, according to data from the National Employment Savings Trust (NEST).
More than three-quarters of enrolled workers agree contributing more is a good thing to do, while more than four in five also said they enjoyed saving for retirement.
The findings come just a week before the total AE minimum contribution rate rises from 2% to 5%, with some worrying that the increase, which could see employee contributions triple from 1% to 3%, could lead to higher opt-out or cessation rates.
Responding to a survey commissioned by the £2.5bn master trust and conducted by YouGov, some said the current regime makes it easy for them to save for retirement, and they also enjoyed the additional employer contribution.
One respondent added: "[I] never see the money to miss as it is taken before wages are received, no temptation to spend it but know that there will be something available in retirement."
NEST director of strategy Zoe Alexander said the survey of 851 workplace pension scheme members showed people appreciate the AE programme.
"This research is really positive," she said. "It shows that people appreciate building a nest egg for their retirement and recognise that saving more into their pension is in their best interests.
"Everyone needs to save for retirement and thanks to AE millions more workers are doing just that, improving retirement prospects for people all over the UK."
She added next week's rate rise could boost a £23,000-salaried 21-year-old's retirement provision to four times the amount it would be without the rate rise, becoming £125,000. The figure includes assumptions that wages, and therefore contributions, will rise with inflation of 2.5%, with the money invested in the master trust's Retirement Date Fund and generating returns of 2-3% above inflation.
"Saving into a workplace pension is a great option for most people. Your employer will contribute too and you're already likely to be enrolled, meaning you don't have to do anything," continued Alexander. "You can sit back and relax, giving your savings time to grow before you need it."
While the rate rise will reduce take-home pay, it will be to some extent mitigated by changes in the personal tax allowance and National Insurance thresholds. For example, a saver earning £20,000 will see contributions increase by £18.52 per month, but when savings from the higher allowances are included, the net reduction in take home pay is £10.09.
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