Jun 4 2008
Many people might opt-out of the personal account pension opened on their behalf if the economic climate is unfavourable to them, it has been suggested.
According to Keith Churchouse, director of the Churchouse Financial Planning company, people will be happy to add to a workplace pension through a personal account if they have money to spare but may not do so if they are feeling the financial squeeze.
Indeed, a year ago, Mr Churchouse would have said very few Britons would opt-out of their personal account but given the current economic climate many people are desperate for every penny and so the situation in this respect has changed dramatically.
So the finance expert concludes that the question of how people will decide not to contribute to a personal account will only be answered in 2012 and will depend on how the economy is faring at that time.
"If by 2012 the economy is doing well and there's a feelgood factor and everyone's feeling very happy then no, I think the opt-out rate will be pretty low," he said.
"If it was happening now, I think you'd get a very different answer."
Data compiled on behalf of Legal & General recently suggested that more British consumers are saving on a monthly basis now than was the case a year ago.
