Employer pensions 'need to be promoted'

By Tom Farley, Fri 19 Mar 2010 - Published in Pensions

The importance of saving into an employer pensions scheme needs to be stressed to workers to stop them opting-out of auto enrolment, according to an expert.

Richard Wilson, senior policy advisor at the National Association of Pension Funds, said his organisation supports the use of automatically enrolling workers into schemes, as it ensures they will have some form of retirement income.

"For most people, saving in a workplace pension is the most sensible thing they can do. It is the building block for investments," he commented.

Mr Wilson pointed out that this approach is especially attractive because of the employer contributions and the tax relief it provides, while he claimed private pensions and property are good add-on investments for people once they have sorted out their workplace fund.

The expert also said that the government needs to educate people on the advantages of being a member of a pension fund, to stop them deciding to opt-out of the plans.

Safe Home Income Plans recently claimed that only seven per cent of Brits believe they will be able to fund a retirement which does not need the state pension.

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