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Threat posed by closing savings gap

I could not agree more with Lorna Bourke&#39s article last week in Money Marketing which gave the real reasons for people not saving.

However, there is one major point I do disagree with. Compulsory pensions, which I believe will come in at least from an employee point of view, will not be inflationary but extremely deflationary.

One point that has not come out of the Sandler or Pickering report is this. If the UK population starts saving and closing that savings gap, where will the money come from?

Clearly, it will come from the money they spend in the shops, on holidays, etc. Indeed, if the gap were closed comp-letely, there would be the mother of all recessions. UK consumer spending fuels about two-thirds of the economy. This is the real dichotomy for the politicians but as usual they can&#39t bear the thought of discussing it.

Mark Dampier

Hargreaves Lansdown,

Bristol

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Guide: 10 required letters — what to send, to whom and when?

This guide from Johnson Fleming will take you through the required communication and also give ideas for additional actions that will ensure your auto-enrolment project is a success. The topics in this guide include: the letters you need to send out; what to send and when; the importance of employee engagement; and what to consider as additional communication.

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