Only 21% of UK employers incentivise good pension saving with total contributions of 15% or more, according to research by Hargreaves Lansdown.
It reveals that average workplace pension contributions on enrolment are 6%, 1% of which are paid by the employee, although 60% of employers intend to review their structure in the next two years.
Average maximum incentivised workplace pension contributions are 10%, of which 4% are paid by the employee, with businesses being advised to urge their staff to save more - half of which currently do not.
"When it comes to pension contributions, most employers are not currently doing enough to help their employees achieve a comfortable retirement," Hargreaves Lansdown senior pension analyst, Nathan Long, said.
"But this can be seen as an opportunity for willing businesses. Employers must focus on incentivising staff to pay contributions of 15% of salary and ensure staff buy in to what is on offer."
This research was based on a survey of over 300 employers ranging in size, sector and location, in order to analyse the different elements of pension contribution structure.
From April next year, employers will be required to ensure total pension contributions increase from 2% to 5%, before a further hike to 8% the following year.
However, in the meantime, employees are advised to pay attention to what their employer is offering them, to start saving more today, and to invest savings with fund managers instead of their scheme's default one.
"Enforced hikes to minimum pension contributions have made many employers reconsider how they help their staff save for retirement," Long continued. "The three key influences on how much income you have in retirement are how much you pay in, where you invest and what options you choose at retirement."
This comes after research from Decision Technology found that each employee stands to lose out on an additional £700 a year from 2019, due to investing in auto-enrolment default funds and not actively engaging with their pension savings.
"We estimate people could increase their income in retirement by an average of £180,000 if they left the default and chose a more appropriate fund in which to invest their money," Decision Technology director, Henry Stott, said.
"It's clear that more work is urgently needed to address the problem and reduce the waste of savings."
