Many employees are losing out because they are unsure of company pension options.

New research from the CBI and Mercer Human Resource Consulting shows that while employers are strongly committed to offering the best possible pension deals, many employees are not cashing in on the possibilities.

Around 22 per cent of companies are finding automatic opt-in schemes to be the most effective, achieving a 93 per cent take up rate.

The CBI’s deputy director general, John Cridland, said: “The pensions issue has received enormous public attention so it’s deeply worrying that, despite the efforts of business, so many employees are failing to see beyond tomorrow and are rejecting employers’ attempts to help secure their future.”

Over the last two-years 41 per cent of firms have switched from defined benefit schemes to defined contribution schemes. Added to this, a further 10 per cent are expected to swap over the next 12 months.

Mr Cridland went on to add: “As people live longer and retire later so the whole concept of retirement pensions will also change.”