The Investing and Saving Alliance (TISA) has urged the Pensions Commission to set out a timetable for increasing minimum auto-enrolment pension contributions to 12%.

The trade body warned that current contribution levels are unlikely to deliver adequate retirement incomes for millions of savers.

In its response to the Commission’s interim report, TISA proposed phasing in the increase over six years while allowing flexibility for different incomes and circumstances.

TISA also called for an auto-enrolment-style pension saving framework for the self-employed, greater use of auto-escalation and employer matching to encourage voluntary saving, and reforms to improve pension saving for low earners and people with multiple jobs.

Head of policy for products and long-term savings Renny Biggins said: “Auto-enrolment has transformed participation, but simply getting people into the system is not enough.

“Millions are still contributing at levels unlikely to provide an adequate retirement, and every year we fail to address this increases the challenge for future savers, employers and government.”

Business leaders call for auto-enrolment boost

Biggins said the next phase of reform should recognise that people have different incomes, working patterns and opportunities to save, arguing that a more flexible and inclusive system is needed to improve retirement outcomes.

TISA also urged the Commission to ensure its final recommendations align with wider reforms, including artificial intelligence, guided retirement, value for money, pensions dashboards and small pots consolidation.

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