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Friday 4th January 2008
Employers are being called on to do more to promote pensions among staff and make people recognise how important a pension plan is to their future.
Des Hamilton, technical director for The Pensions Advisory Service (TPAS), said that there is an onus to "make people understand that they cannot afford not to join" a pension scheme.
He said that there exists a "lack of understanding" when it comes to pensions and that this is partly due to the fact that people tend to find the language concepts were explained in to be "strange and alien".
Mr Hamilton argued that the duty is on employers to promote and improve the take-up of pensions among employees.
He concluded: "If you are given free reign to promote the scheme properly to all employees then you can get 90 plus per cent voluntary take-up."
Figures released by the Government Actuary’s Department in 2003 demonstrated that the proportion of the population aged over 65 years old will increase from 16 per cent to 25 per cent, resulting in a massive increase in the strain placed on the government pension system.
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