"Public consultation will now be deferred until after 2012 and the policy won't be implemented until after 2014/2015."
Investment Savings and Insurance Association chief executive Peter Neilson said the delay was disappointing but not surprising.
He said there was already a growing pension gap between New Zealand and Australia and if New Zealand did not doing something soon to get more people saving it would continue to increase.
Tower head of investment Sam Stubbs said auto enrolment would have been a nice to have earlier rather than later but the delay was "hardly surprising."
"It's more important that they have retained the level of KiwiSaver contributions."
English and Foss also took the opportunity to set a date for the introduction of a new disclosure regime for KiwiSaver providers.
From April 1 all providers will have to produce quarterly reports and one larger annual report containing standardised information on returns, fees, assets, key personnel changes and any conflicts of interest.
KIWISAVER
* Auto enrolment delayed beyond 2014/2015.
* New disclosure rules to come in from April 2013.
* Review of default providers with final decision by December.