LONDON, March 5 Britain should make saving for
retirement compulsory and deny workers the right to opt out of
employer schemes, the head of the world's largest investment
Speaking at a pension industry conference in Scotland on
Wednesday, Larry Fink, Chief Executive of BlackRock said giving
people the option to opt out of retirement schemes means many
will not put enough money away to fund their old age.
"I would recommend simply making an appropriate level of
retirement savings mandatory here in the UK, without the
opportunity to opt-out," he said.
"There is too much risk that people will either opt out, or
not put enough away even if they remain in a plan."
Britain introduced a system of automatic enrolment of
workers onto their company pension schemes in 2012 but allows
people to opt out.
Fink highlighted the example of Australia, where retirement
saving is mandatory, as "extremely effective."
His views echo the findings of a report published in January
by right-leaning think tank Policy Exchange, that also called
for Britain to force all workers into employer schemes.
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.
(Reporting by Chris Vellacott; Editing by Elaine Hardcastle)