A survey by the ABI (Association of British Insurers) has found that the majority of people who actually need to save for retirement as they have little of no other wealth provision (amounting to around 4.5m people) cannot actually afford to do and would reject the idea of compulsory payment into pension plans.
This contradicts figures issued by the recent polls suggesting that 70% of the population would be prepared to have complusory pension payments.
Our view
This is a matter of simple facts. People realise the need to pay in to pensions and it is easy to say - yes. However, saying "yes" is easier than the reality of - "it is now law that you have 10% of your wages stopped to pay into your pension scheme".
A real vote loser this. We believe that the Government, whichever it may be, will introduce some form of Employer compulsory contribution in the next 5 years or so. This may initially involve some "cute" spin doctoring with tax incentives for employers - but in the big picture will mean part of your pay will be directed into a pension fund. Wait and see. It may be a few years away - but see if we are wrong.