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Standard Life backs compulsory pension saving

Standard Life chief executive David Nish is calling on the Government to introduce compulsory pension savings if the take-up of auto-enrolment is low.

Speaking at a Social Market Foundation fringe event at the Conservative conference in Birmingham today, Nish said advisers can support the scheme but it is employers that will make auto-enrolment a success.

He said: “If we do not receive high percentages then we are going to have to introduce compulsion. Everyone is talking about compulsion so go and look at Australia and see the contribution levels in the mid to high teens.

“In the long-term we need to have compulsion if we cannot see success coming through which is why it is really important that small businesses join auto-enrolment.”

The Government has delayed the introduction of auto-enrolment for small firms until 1 June 2015, three weeks after the next general election, sparking fears it may be sidelined.

Treasury select committee member Mark Garnier said he “sincerely hopes” the Government will introduce the moves for small firms, rather than opting for a “lilly-livered U-turn”.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. David Trenner - Intelligent Pensions 8th October 2012 at 12:26 pm

    Norman Fowler abolished compulsory pensions from 1988, in a piece of legislation that stopped wicked employers paying money into schemes for the benefit of their employees. Even those employers who did not require an employee contribution were required to allow their downtrodden staff to opt out of these benefits.

    If David Nish has his way we might finally see a U turn from the Tories, and only the generation who opted out or ‘non-joined’ in the last 25 years will suffer.

    You know it makes sense ….. so you also know it is not going to happen!!

  2. And there’s me thinking NI did this.

    As for Australia I am pretty sure that the level of savings actually fell when compulsion was introduced.

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