The Association of British Insurers and the Engineering Employers Federation have called on the UK government to support automatic enrolment in work pension schemes.

The organizations have issued a joint statement on pension reform, saying that difficult choices need to be made, asserting that automatic enrolment into pension saving schemes already has widespread support.

The statement said that both groups are in favor of compulsory employer contributions as there is evidence that where the employer pays into a scheme, the employee is five times more likely to contribute.

Stephen Haddrill, director general of the ABI and Martin Temple, director general of EEF, said in the statement: We believe that with the right regulatory structures and phased implementation, businesses of all sizes will be able to absorb the cost of ‘soft compulsion’.

The government must take the opportunity presented this week to lead a constructive debate about comprehensive reform that ensures all concerned play their part in closing the savings gap.

The Pension Commission publishes its much-trailed report on the state of the UK’s retirement provision on November 30.