By Max Clarke

Poor levels of personal savings and an inefficient pensions scheme are failing workers, a new report by the Workplace Retirement Income Commission reveals.

“This report rightly identifies the need to do more to boost savings for retirement, and makes some helpful recommendations about how to build a culture of saving in the UK,” commented Neil Carberry, CBI Director for Employment commented.

“However, the commission’s proposal to consider increasing the minimum compulsory pension contribution in 2017 is not the right answer. The current plan to introduce a floor of 8% saving from next year remains the best way to ensure more people who can afford to save do so.

“This level was chosen by Lord Turner's Pensions Commission to deliver a pension at a level hard-pressed employers and employees could afford. Further increases in the minimum contribution would put employers and employees under even greater financial pressure, and may drive people away from pension saving altogether.”

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