Young people need to contribute more to pensions, analyst claims

Mon, 29 Jan 2007

Young people need to be given help to ensure that they realise the benefits of contributing regularly to a pensions fund, it has been claimed.

The comments have been made by Ken MacIntyre, policy advisor at the National Association of Pension Funds, the pensions representation service.

Mr MacIntyre claimed that most young people are not saving adequately for their future and acknowledged that there were several reasons for this.

"Some can't afford it and some are just not interested," he said.

"What needs to be done with our mechanism is to ensure that saving becomes a bit and that it becomes automatic."

Last year, the government confirmed details of a national pensions savings scheme, which was intended to boost pensions participation among younger people.

The system, built around a concept of automatic enrolment, involves every full-time worker being allocated a personal account.

The employee then contributes four per cent of their total salary, while employers put in three per cent and the government adds one per cent in the form of tax relief.

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