Mellon has cautioned any consideration for pensions compulsion could lead to contributions being set at too low a rate in order to accommodate affordability concerns the entire UK population.
In response to findings of the Pension Commission, the Human Resources & Investor Solutions business of Mellon suggests individuals and employers might prefer to satisfy only the minimum requirements towards retirement. The firm predicts compulsion may also mean people having to sacrifice their savings for other purposes in order to satisfy a compulsory pension requirement. Mellon points also to potential problems arising through the introduction of compelling contributions into privately-managed arrangements. The firm believes current initiatives to get people to save have failed as ...
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