Eight out of ten UK workers believe compulsion is the only option in order to get individuals to save, according to new research.
A survey conducted by B&CE finds more than a third of people believe in compulsory employer contributions, while a quarter are in favour of individual contribution and a further 33% of respondents say both employers and individuals should make compulsory pensions contributions.
Moreover, as many as 87% would have their pension contributions deducted from their salary if their employer was willing to contribute the same amount.
B&CE, a pension provider for the construction industry, also finds 72% of respondents feel workers should be automatically enrolled to their company pension when starting work, but have the ability to opt out if they wish.
Deputy chief executive at B&CE Benefit Schemes, John Jory says: “B&CE has argued successfully for the government to introduce forms of quasi compulsion, such as auto enrolment, and now we would like to see this taken to the next level with matching arrangements being explored.”
B&CE points out 15% of respondents would be encouraged to take up saving for retirement if advised on what to do, while 61% of those people questioned are happy to have government to instruct them on their pension saving future.
Jory concludes: “The research clearly shows that overwhelmingly the public feels that some form of compulsion is the only way in which to encourage people to save and that, in the main, they are happy to be guided by the government.”
Although there appears to be broad support for such proposals, prime minister Tony Blair last week ruled out the introduction of compulsory pension contributions before the next election, despite some anticipation of further compulsion to be encouraged by the Turner report, due out in the Autumn.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Gareth Vorster on 020 7968 4554 or email [email protected].IFAonline
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