However, people who are not near to retirement tend to prioritise other things above their pension savings. That is why we have introduced the duty on employers to enrol staff into a workplace pension, and are bringing in a flat-rate state pension so people know what they are getting from the state.

We have taken the hassle out of saving for a pension. Staff don’t need to take any action; money comes off their pay automatically, and their employer puts in, too.

Already we are seeing low opt-out rates from some of the country’s biggest employers and, crucially, those with the lowest opt-out rates are the ones that have taken the time to engage with their employees. Employers can make a real difference to engaging with the workforce ahead of auto-enrolment.

Employers need clever communications. Not everyone reads a letter, but a recent survey showed that 80% of people read their payslip. For example, Marks and Spencer created bright posters using its Percy Pig character as part of a six-month plan that involved letters, telling staff to check their payslips, information in-store and an online tool to view scenarios.

Meanwhile, Asda has created a dedicated pensions helpline and posters with illustrations of how much employees pay in, how much the employer pays in and the actual reduction in take-home pay factoring in tax relief.

The first priority has to be giving people a foot in the door to pension saving. Then we can start talking about saving more.

Steve Webb is pensions minister

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