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Pension reforms are being called for by the Confederation of British Industry (CBI) to avoid extra costs for the government, employers and employees in the future.

The government plans to ensure all new employees are automatically enrolled in their company's pension scheme from 2012.

Employees of businesses without a pension scheme will have the National Employment Savings Trust as an alternative.

However, the CBI is concerned that the government's current plans are too complicated and is calling for a "simplification" to help employers and employees.

Director of employment policy at CBI Katja Hall said: "Automatically enrolling people into pension schemes is the right thing to do, but the reforms must cover all employers and be easy to implement."

Recently, the government confirmed plans to raise the male pension age to 66 by 2016.