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Over half public back compulsory pension scheme

More than half the UK population believe they should be made to save for their retirement, according to a survey for Standard Life.

Around 53 per cent of those covered in the survey by Mori agreed that everyone earning a wage should be forced to invest some of it in a pension scheme for their retirement.

A large majority of respondents also believe that starting to save for a pension should not be left until middle age. Around 84 per cent disagreed with the statement that there is no need to start saving for retirement until the age of 40.

Standard Life marketing manager Andrew Black says: "It is interesting that people accept that compulsion may be necessary to make sure that saving for retirement is translated into reality. It is our view that compulsion will certainly be necessary if the Government is to achieve its aim of wider pension coverage."

But Standard says the research, which covered 1,874 consumers, reveals people still need education on the detail of financial products. When asked whether they would rather pay money now into a Tessa or Pep than into a personal pension, 42 per cent were either neutral or did not know.

On whether tracker funds are the safest way to invest in the stockmarket for pension provision, around half did not know or did not have a view.

Black says: "On more detailed topics, such as the choice of savings vehicles and choice of investments, the need for public education is underlined by this research. We firmly believe that educa tion must be a priority for the future."

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