Staff support compulsory pension fees

Employers and their staff should be forced to make compulsory contributions
to occupational pension schemes, research finds.

A survey of more than 1,500 workers reveals that almost three-quarters would
be happy if they were forced to make contributions into pension schemes. More
than 80 per cent of those polled by Accenture would support compulsory
contributions by employers.

The study also reveals widespread disillusionment with the current pension
system – just 17 per cent of the respondents believe they are saving enough
money for retirement.

This fell further to 11 per cent among staff on the edge of retirement, many
of whom are now confronted with the need to stay in employment far longer than
anticipated.

Michael Riley, head of Accenture’s insurance strategy group, said the
findings show that the voluntary approach to pension contributions is not
working.

"Employees are saying they want a compulsory pensions regime and one at
substantial levels of contribution.

"This could be a lifeline to a battered life and pensions
industry," he said.

Compulsory pension contributions

If compulsion was introduced what proportion of your salary
should you/your employer have to pay towards your pension?

Full time workers % of salary            All age groups             16-24               25-34               35-44               45-55               55+

           
I should have to contribute                    8.7                               8.2                   8.7                   8.8                   8.5                   9.7
Employers should contribute                 9.1                               8.7                   9.2                   9.1                   9.4                   9.4

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