The TUC has called for compulsory employer and employee pensions contributions as a way of increasing the number of people saving.
The Government’s Pensions Commission, which published it’s interim findings today, said that more than 12 million working people are not saving enough for their retirement.
If the retirement age does not go up, state pensions spending or private savings must rise by £57bn a year to meet the shortfall, the commission said.
The CBI has called for an increase in the retirement age to 70, a move which has been vigorously opposed by the trade unions.
Kay Carberry, TUC assistant general secretary, said: “The voluntary approach to pensions saving has had its day. The country faces a stark choice. We either save more now or pay a high price later.
“For a decent retirement for all, either all employees and employers start paying enough into pensions, or everybody will end up paying more tax and working for longer,” she said. “There is a compelling case for phasing in compulsory employer and employee pensions contributions to increase the numbers of people saving.”
