Hundreds of thousands of workers are about to get a company pension for the first time in their lives. From next month those enrolled in this new scheme will start having money taken from their pay packets.
None of these savers will have filled in a form or ticked a box to give their permission. But letters are being sent out telling them the money will be invested for their retirement and locked away until they reach the age of 55.
There has never been a pension scheme like this before in Britain — and it may come as a shock to many. Automatically putting workers in to a pension is one of the Government’s ideas to help get us all saving more.
WHY YOU CAN’T LIVE OFF THE STATE
Britain’s state pension is one of the meanest in the western world and is, simply, not enough to live off. The basic payout is just £107.45 a week, or £5,587 a year. On top of this the poorest can claim a series of benefits.
There are plans to get rid of these complicated top-ups and bring in a new flat rate pension of £140 a week — though for most that still won’t be enough to make ends meet. Meanwhile, we are saving even less than ever.