Debate Magazine

Reader's Letter Of The Day

Posted on the 24 January 2014 by Markwadsworth @Mark_Wadsworth
From City AM Forum: Compulsory saving  [Re: Brits told: Save six times more for your pension or face poverty, Tuesday] It's not clear that a compulsory savings scheme would help to solve the pensions crisis in the UK.  Aside from philosophical issues as to whether the government should be able to mandate what individuals do with their money, there are practical problems to address.  In Australia, which introduced such a scheme in 1992, savings were paid out in a lump sum on retirement. But many just accumulated debts throughout their adult lives (anticipating the retirement payout), and ended up no better off in net terms.  Gerald Patterson.

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