UK - Pension compulsion is "a step too far" but opt-out rules should change to encourage more employees to join schemes, insurers and the Conservative Party claim.
Their comments follow a survey by the Association of British Insurers which showed that while around 70% of people supported the principle of compulsory pension saving, only 25% backed the move if it required them to contribute more.
Tory work and pensions spokesman David Willetts said the survey was evidence of how serious the pensions crisis had become, that people were “even willing to contemplate compulsion”.
But instead of compulsion, Willetts said employees should automatically become members of company schemes unless they specifically opted out.
He added: “Compulsion is a step too far, but there is nothing wrong with harnessing the powerful force of inertia to get more people saving.”
ABI director general Mary Francis agreed and believed it was “quite likely” that automatic scheme membership would be introduced but with people retaining the option to opt out.
Compulsory pension saving is currently being considered by the Pension Commission, under the chairmanship of Adair Turner, the former director-general of the Confederation of British Industry.
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