I could not agree more with Lorna Bourke's 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't bear the thought of discussing it.