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RECORD money: Auto response to pension crisis.

THE Government has been urged to fast-track plans to automatically enrol workers into pension schemes.

A study by the Association of British Insurers found that 50 per cent of people of working age were not paying enough into a pension, including a third of the workforce who are saving nothing at all.

The association has called on the Government to bring forward plans for workers to be automatically enrolled into workplace schemes - from 2012 to now.

They added that if auto-enrolment was brought in before 2010, it could lead to long-term savings of more than pounds 500million by 2012.

The group added that 62 per cent of workers said they supported auto-enrolment if it was into a good scheme into which their employer made contributions.

ABI director general Stephen Haddrill said: "Our problems arise from a decade of policies promoting debt and credit. It is time for that to be reversed.

"It was disappointing that the Government didn't use the Pre-Budget Report to give pension saving a boost by bringing forward plans for automatic enrolment. But it's not too late, and we'll continue to urge the Government to take this action."
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Title Annotation:Business
Publication:Daily Record (Glasgow, Scotland)
Date:Nov 27, 2008
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