Compulsory Pensions _ EU Say Yes

Compulsory Pensions - EU Say Yes

The European Commission has confirmed that automatic enrolment of members into contract-based schemes, such as group personal pensions, is consistent wit EU law.  Industry and consumer groups have been lobbying the EU to make the allowance amid fears that employers would close existing schemes or level down contributions to the lower personal account rate, leaving staff significantly worse off in retirement.

Mike O’Brien, pensions reform minister said “Automatic enrolment is key to combating the inertia that prevents people from saving and I am please that millions of people who work for an employer who offers a workplace personal pension will be able to benefit from this important social reform”.

Our view

This is all part of the Government’s plan to force us all to save in pensions.  We have ignored the carrot now for the stick.  

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