UK - Red tape and a reluctance by employers to make contributions into stakeholder schemes have prevented workers from making payments, HSBC claims.
The bank estimates that at least 1.5 million workers have failed to make contributions totalling approximately £745m into stakeholder schemes since October 2001.
HSBC believes the government must introduce tax incentives to encourage employers to make contributions into their stakeholder schemes.
And it wants pension providers to overhaul their administrative systems to make them more user-friendly to both employers and workers.
The firm believes the combination of employer contributions and simpler administrative systems will make stakeholders far more attractive to workers.
HSBC head of life and pensions Harpal Karlcut said: “Our figures show there is still a massive amount of money that is not being invested in pensions, despite a huge perceived shortfall in retirement provision.
“The pensions industry is letting down employers because most providers still do not offer internet-based pensions administration systems.”
But he added it was essential that employers were given incentives to make pension contributions as this would “drastically improve the retirement prospects of millions of British workers.”
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