Pension saving 'may become compulsory' if AE fails

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Pension saving may be made compulsory if auto-enrolment fails to create a savings culture, a report by an influential think tank is said to argue next month.

The Centre for Policy Studies is expected to argue that the pension industry is in "the last-chance saloon" of public opinion. The Independent said sources had indicated to it that early drafts of the report suggest the state may have to intervene if pension fund administrators cannot achieve a "transformational" change in people's attitudes to saving for their old age. Report author Michael Johnson has set five years as the deadline for an overhaul of the industry, which will coincide with a review into the effectiveness of automatic enrolment.

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