There has been a lot of talk recently in the Sunday papers and financial press regarding the potential impact of Occupational pension reform on the UK economy. There seems to be a worry that if companies are forced to pay into pension plans for their employees, and that the workers have to pay in themselves as well, then this would have a large affect on the UK economy. There are also costs involved regarding the administration of these payments and reporting back to The Pension Regulator (TPR). The combination of these issues are considered to be potentially damaging to the growth of the UK economy, at a time when growth is of prime importance.
However there is also a school of thought that believes that the legislation is not going far enough. Some believe that the requirement of a total of 8% per year should be increased to 12%, but personally I think this would be a step too far. I agree that the UK should introduce the auto-enrolment system as it’s worked in countries such as Australia, but I think that the idea to increase the figure would be a step too far.
I’d be interested in hearing other people’s views on the subject.