"Automatic Enrolment is an opportunity not to be missed." Said Stephen Gay, Director of Life, Savings and Protection at the ABI.
"It cannot be stressed enough how important it is to save for retirement. Automatic Enrolment will help workers start a savings habit that will stay with them for a lifetime. The fact that we are living longer is great, but we can no longer have our heads in the sand about how we fund our income in retirement. The State Pension is a foundation, but most people need more and the earlier people start to save the easier they will find it to build enough savings for their later life.
"The really good news is we're not saving alone; employers and the government will be boosting our saving too. I would urge all eligible workers to make sure they're part of it."
From 1 October UK workers will be automatically enrolled into a workplace pension scheme. For many workers this will be the first time they will save into a company pension. While workers will be paying into their pension scheme, they are not saving alone; employers and the government through tax relief will also be contributing helping to increase their pension saving more quickly.
Pensions have never been so important. People in the UK are living longer and are simply not saving enough, especially as we are all leading healthier, more active live well into retirement that require more money to spend on the things we want to do.
To help bridge this savings gap, the Government is introducing new measures to help provide security in retirement. Times are financially tough for everyone, but saving towards retirement as early as possible can make a real difference to the income people have in retirement, especially now that employers also have a duty to contribute towards the pension scheme. This is an opportunity not to be missed.
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