The insurer Legal & General is calling for employers to match their employees pension contributions pound for pound, in an attempt to build up the UK pension systems.
Legal & General stated that if the Government introduced this contribution matching, then 90% of employees would take them up on the offer and join the scheme.
Our view
This figure is way too high and many employees just cannot be bothered to join pension schemes where employer contributions are made. Many people feel that pensions are boring and unimportant and do not seek advice.
They may be boring but the need for a decent pension as we all live longer into retirement is most definitely important. The State will only support the retiring population with a subsistence level of income and if we want any sort of increased lifestyle then we have to provide for ourselves.
Following the release of the pensions consultation paper on 17 December 2002, a working party is being put together to investigate the implications of compulsory pension contributions. If employers were made to match their employees' contributions then some Government assistance, especially for small businesses, would be necessary.
If not, having to pay into a pension for an employee may be seen as another form of tax.
Worse still, it could deter employers recruiting.