It should pay to save

The UK Government is taking on a huge social experiment with the introduction of auto-enrolment into pensions and the creation of the personal accounts scheme. It therefore seems sensible to look at how other countries have taken on this challenge. New Zealand is a good example; the KiwiSaver scheme launched in summer 2007. In less than eight months 500,000 people have joined, investing over NZ$600 million. This far exceeds expectations - the New Zealand government predicted 250,000 people would join within 12 months. Even better, one in five savers is aged 25 or under, showing that it is...