Alan Johnson, Work and Pension Secretary has questioned whether any Government has the right to insist on compulsory pension contributions. He believes that more is needed to be done, to increase the number of volunteers entering into private pensions, such as auto enrolment and compulsory employer contributions, but was very wary about compulsory private provision.
Where pension credits are concerned, he believes that it had worked well in solving immediate problems and reducing current pensioner poverty, but it was not a final solution.
Our view
Mark our words, compulsory pensions are on their way! A political hot potato that they are all avoiding.