LONDON Jan 22 Britain should make workplace
pension schemes compulsory to prevent millions of people living
out their retirements in poverty, according to research by an
influential think tank.
The report, published on Wednesday by right-leaning Policy
Exchange, urged the government to scrap workers' right to opt
out of workplace pension schemes.
Britain introduced automatic enrolment of workers into their
employers' pension plans in 2012, hoping to boost savings rates,
but stopped short of making it compulsory.
The think tank said saving for retirement should be seen as
an obligation, and people were not saving enough under the
"With an ageing population, putting money aside for later
life should be seen in the same context as National Insurance
contributions, taxes and even education," said James Barty,
author of the report.
Policy Exchange warned that 40 per cent of working Britons -
11 million people - were in danger of not building up big enough
pension pots to ensure a comfortable old age.
Under the think tank's proposed "Help to Save" scheme,
pension contributions would also increase automatically with pay
rises until a rate of 12 percent of earnings was reached, up
from the current 8 percent contribution rate.
Of those retiring in 2013, the report said one in seven
would be relying entirely on the state pension, while one in
five would live below the poverty line.