Less than a third of members of the auto enrolment Nest Pension scheme are paying into their retirement pots, according to new data released under an FOI request.

Under 4m of Nest Pensions’ 13.7m members are contributing to their pensions, the figures show.

Nearly 10m members are not contributing, with 412,000 having never made a single contribution, according to platform InvestEngine. 

According to the data request, less than 2%, 217,000, of Nest members have increased their overall contribution rate since opening their account.

The average pot size is approximately £4,000, rising only modestly to £5,239 for those aged 55-64.

The findings reveal a lack of pension engagement within the UK workforce, the firm claimed, especially given Nest’s central role as the pension provider for almost half (46%) of the UK’s working population, as well as wider concerns about levels of engagement with pensions across the country.

Thirteen years after the introduction of automatic enrolment (AE) in October 2012, the figures reveal a member engagement challenge for defined contribution schemes. While AE has dramatically expanded coverage, low contributions mean many savers risk inadequate retirement income,  InvestEngine warned.

Average Nest pot sizes stand at £3,218 for women and £4,924 for men. Levels of saving do not appear to grow significantly with age with members under 29 having an average pot size of only £1,991. That increases only slightly to £5,239 for those aged 55-64, well below levels needed for a comfortable retirement.

The data also points to regional disparities. Average pot sizes are highest in South East England (£4,475), Southwest England (£4,169), and the East of England (£4,159). Every other UK region averages below £4,000, with the lowest levels of savings in the North West (£3,470) and the West Midlands (£3,494).

The figures also illustrate the ongoing problem of fragmentation within the UK’s pension landscape, said InvestEngine. In many cases, small pots are the result of workers holding multiple pensions, leaving them at risk of higher fees and lower long-term returns.

George Bonello, head of pensions at InvestEngine, said: “The sheer number of people who do not currently contribute and in some cases have never contributed to their pension at the country’s biggest workplace provider is troubling.

“While auto-enrolment is rightly celebrated for bringing millions into pension saving, it has indirectly caused greater fragmentation and a lack of active member engagement. This results in adverse outcomes for savers in some cases, with higher fees, weaker long-term returns, lower visibility and control and greater administrative difficulty in planning for retirement.

“This adds to the risk that many UK workers will not be able to adequately fund their retirements, and work must continue to boost member engagement.”