Employers and workers are saving too little into some company pension schemes to provide a decent level of income during retirement, a report has warned.

Mercer Human Resources Consulting said many companies were contributing only half of what was needed into defined contribution schemes for members to receive a good retirement income.

The group said employer contributions now averaged six per cent of staff salaries, down from 6.3 per cent two years ago and half the 12 per cent they needed to contribute.